Project Leap proves the viability of a quantum-safe financial system

The BIS Innovation Hub Eurosystem Centre, Banque de France, and Deutsche Bundesbank have collaborated on Project Leap to establish a quantum-safe communication channel for shielding financial data.
This initiative addresses the vulnerability of current cryptographic algorithms and the confidentiality of financial data to the potential threat posed by quantum computers. Quantum computers have the capability to compromise the security of existing cryptographic protocols, which are vital for securing data and transactions in the financial system.
While functional quantum computers are not yet available, the need to urgently address this security threat arises from the fact that malicious actors can intercept and store encrypted data today, with the intention of decrypting it in the future when quantum computers become powerful enough to do so. This implies that data transmitted or stored today are susceptible to future quantum attacks. The long-term sensitivity of financial data makes today’s systems insecure in the face of the potential future existence of quantum computers.
Project Leap aims to enhance the security of the financial system by implementing quantum-resistant cryptographic protocols. However, the implementation of these protocols in financial systems presents various challenges, including the lack of flexibility in legacy systems, requiring a significant transition effort. The project addresses these challenges and seeks to accelerate the establishment of quantum-resistant IT environments in the financial system.
During the initial phase of Project Leap, post-quantum cryptographic protocols were implemented for central bank processes, such as payments. A quantum-safe environment was created to secure infrastructures against data interception during transit, offering protection for highly sensitive communications. The project not only aims to quantum-proof the financial system but also to raise awareness within the central banking community, providing valuable insights into the quantum journey of the financial system.
One specific challenge addressed in the first phase is cryptographic agility, enabling the seamless switching between cryptographic schemes and algorithms without affecting applications. Additionally, the tradeoff between security strength and performance in post-quantum cryptography is emphasized. The project’s first phase successfully established a quantum-safe environment in a financial systems context, laying the foundation for further exploration in real-life environments. A second phase is planned to investigate more network architectures, test different hardware, incorporate additional communication layers, and include additional central bank processes, advancing the project’s goals of achieving a complete chain of trust and quantum-proofing the financial system.