Quantum Cybersecurity for the Financial Sector

Abstract

The exponential growth of digital finance—encompassing online banking, digital assets, decentralized finance (DeFi), and algorithmic trading—has intensified the need for robust cybersecurity frameworks. However, the rise of quantum computing presents a dual challenge: while it enables revolutionary advances in data analytics and optimization, it simultaneously threatens the cryptographic foundations of contemporary financial systems. This research explores the emerging field of quantum cybersecurity and its implications for safeguarding financial infrastructures in the post-quantum era. Traditional encryption methods such as RSA, ECC, and Diffie–Hellman key exchange are vulnerable to quantum attacks, particularly through Shor’s algorithm and Grover’s search algorithm, which can efficiently break asymmetric and symmetric cryptographic schemes. The study evaluates quantum-resistant cryptographic protocols—including lattice-based, hash-based, and multivariate polynomial encryption—as viable solutions for ensuring financial data integrity, transaction confidentiality, and regulatory compliance in quantum-vulnerable environments. Furthermore, it investigates Quantum Key Distribution (QKD) and Quantum Random Number Generation (QRNG) as hardware-assisted techniques for achieving unconditional security in financial communications and transaction authentication. By integrating quantum cryptography, hybrid encryption, and AI-driven threat modeling, this work outlines a roadmap for financial institutions transitioning toward quantum-secure infrastructures. The findings demonstrate that quantum cybersecurity is not merely a defensive measure but a transformative enabler for resilient digital finance, aligning with global efforts to achieve technological sovereignty, financial stability, and sustainable innovation in the era of quantum computing.