Hi All
Here is an interesting paper on Quantum Computing and the Financial Sector in plain English to explain the opportunities and risks.
Quantum computers are still in an experimental phase, but in the future, they may
have a profound impact on the financial system. By providing faster and potentially
more efficient solutions, quantum computers have the potential to solve certain
complex problems that are of paramount interest in the field of economics and
finance. For example, quantum simulation algorithms can be leveraged in stress
testing and macroeconomic analysis, and quantum optimisation can be used in asset
pricing. Meanwhile, the advent of quantum computers also introduces a potential
threat to financial stability, especially through their ability to breach some of the most
widely used cryptographic algorithms. Despite the nascent state of quantum
computing development, the potential for sensitive data to be stored now with the
intention to be decrypted later necessitates immediate preparation. This paper
explores the transformative potential of quantum mechanics and its applications to
the financial system, including the potential benefits as well as the main risks. It also
highlights current actions within the central bank community to address these
potential risks, including Project Leap, started by the Bank for International
Settlements Innovation Hub, the Banque de France and Deutsche Bundesbank.
https://www.bis.org/publ/bppdf/bispap149.pdf
Regards
Caute_Cautim
