The trial is seen as an important step in demonstrating the commercial viability of QKD on existing fiber optic networks. Despite the current high cost of the technology, HSBC and other financial institutions are preparing their systems for the quantum computing age. The threat of quantum computers lies in their potential to break current encryption methods, allowing criminals to steal confidential financial data and manipulate exchange rates. The transition to quantum-secure systems could also concentrate power among large financial institutions, potentially undermining fair competition in currency trading.
Key takeaways:
- HSBC has completed a trial using quantum key distribution (QKD) technology to protect sensitive financial data, marking the world's first such trial.
- The bank used the QKD tool to secure a 30 million euro foreign exchange trade on its proprietary trading platform, in collaboration with BT, Toshiba, and Amazon Web Services.
- HSBC views QKD as a precaution against future cyber threats from quantum computers, despite the technology currently being prohibitively expensive for many end users.
- Quantum computers pose a threat to FX trading as their greater processing capacity could break current encryption methods, allowing criminals to steal confidential financial data and manipulate exchange rates.