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EU Financial Watchdogs Say Quantum Computers Could Threaten Blockchain Security

Regulators warned the risk is urgent because new research has shortened attack timelines and they want member states to begin migration planning by the end of 2026.

Overview

  • The Joint Committee of European financial supervisors issued an Autumn 2026 assessment that warned an advanced quantum computer could break the cryptography protecting blockchains and other financial systems, a report published on Sept. 23 that pushed preparation into the near term.
  • The authorities made clear no existing quantum machine can today crack Bitcoin or Ethereum keys but flagged 'harvest now, decrypt later' as a major worry because attackers can store public ledger data or encrypted records for future decryption.
  • New research from Google Quantum AI and collaborators has sharply lowered prior estimates of the quantum resources needed to attack elliptic-curve cryptography, increasing pressure on networks and custodians to act sooner.
  • Protocol responses are still in design: the Ethereum Foundation has an internal target to reach quantum resistance by December 2029, while Bitcoin developers are debating draft proposals (BIP-360 and BIP-361) to introduce post-quantum outputs and migration rules.
  • The European Commission’s roadmap requires member states to begin post-quantum migration by the end of 2026 and protect high-risk systems by 2030, and analysts’ estimates of exposed Bitcoin holdings vary roughly between 6.0 million and 7.0 million BTC, prompting custodians to build crypto-agile custody options now.