Three major financial regulatory agencies of the European Union: Quantum computing may threaten the security of blockchain cryptography

According to Cointelegraph, the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA) stated in a joint risk update that advancements in quantum computing could undermine the cryptographic systems that secure blockchain transactions, communications, and databases.

Google Quantum AI researchers estimated in March that the number of physical quantum bits required to break the cryptographic techniques used by many cryptocurrencies is about 20 times less than previously estimated. There currently exists no computer capable of executing such an attack.

Bitcoin developer Jameson Lopp and others proposed in February to gradually phase out the current signature scheme and to restrict the usage of untransferred funds five years after the proposal is activated; this proposal has not yet been adopted. The Ethereum Foundation plans to enable Ethereum's execution, consensus, and data layers to be resistant to quantum attacks by December 2029.