Is Post-quantum Cryptography Essential for Protecting Digital Systems?
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Synopsis
In a significant warning, SEBI Chairman Tuhin Kanta Pandey highlighted the imminent risks posed by quantum computing to cybersecurity. As cryptography may no longer be safe, he advocates for urgent reforms in password security. This article delves into the implications for digital systems and the necessary transition towards post-quantum cryptography.
Key Takeaways
- Quantum computing poses a significant threat to current encryption methods.
- Transitioning to post-quantum cryptography is essential for future-proofing digital systems.
- SEBI is proactive in promoting blockchain technology within fintech.
- There is a growing need for integrity and transparency in capital markets.
- Fraudsters are exploiting digital platforms to deceive investors.
Mumbai, Oct 8 (NationPress) Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (SEBI), cautioned on Wednesday that the emergence of quantum computing could potentially dismantle cryptography-based encrypted passwords, which are currently employed to safeguard digital systems.
Addressing the media during the Global Fintech Fest 2025, Pandey remarked, “Research into quantum-safe computing is underway, and quantum computing will inevitably become a reality.”
“This could undermine traditional cryptography, which underpins crypto security. Even passwords generated through cryptographic methods may be compromised. Thus, we must rethink how we develop and secure our passwords,” he asserted.
He compared the anticipated effect to the Y2K phenomenon, where systems required updates as the year transitioned from 1999 to 2000.
“Passwords created using current cryptographic techniques could be at risk from quantum computing. In areas where cryptography is employed for security, measures will be necessary to implement quantum-resistant passwords, also known as post-quantum cryptography,” Pandey elaborated.
The SEBI chairman also noted that certain fintech firms are already utilizing blockchain technology.
“We have established a regulatory sandbox where these companies can showcase the various applications of blockchain in fintech,” he mentioned.
Previously, at another event, Pandey observed that while digital infrastructure has enhanced market accessibility, it has also equipped fraudsters with new tools to mislead investors.
“Capital markets are critical to our nation's growth, and it is our shared duty to ensure that this engine operates on a foundation of integrity and transparency,” he stressed.
Earlier this week at the World Investor Week 2025, Pandey stated, “Although digital infrastructure has placed markets at our fingertips, it has also provided fraudsters with new means to deceive investors through unsolicited messages on messaging apps, dubious influencers, and fraudulent trading apps and websites promising what our markets can never deliver -- guaranteed returns.”
Point of View
The urgency expressed by SEBI Chairman Tuhin Kanta Pandey underscores a critical juncture in cybersecurity. As digital platforms proliferate, ensuring the integrity of these systems through post-quantum cryptography is paramount. The implications of quantum computing are profound, and proactive measures are essential for protecting our financial ecosystem.
NationPress
08/10/2025
Frequently Asked Questions
What is post-quantum cryptography?
Post-quantum cryptography refers to cryptographic methods that are designed to be secure against the potential threats posed by quantum computers.
Why is quantum computing a threat to current cryptography?
Quantum computing has the potential to solve certain mathematical problems much faster than classical computers, enabling it to break traditional encryption methods.
How can organizations prepare for quantum computing?
Organizations should begin transitioning to post-quantum cryptographic methods and invest in research to understand the implications of quantum computing on their security.
What role does SEBI play in fintech?
The Securities and Exchange Board of India (SEBI) regulates the securities market in India and promotes the development of the fintech sector while ensuring investor protection.
What is a regulatory sandbox in fintech?
A regulatory sandbox is a framework set up by regulators that allows fintech companies to test their innovations in a controlled environment under relaxed regulatory requirements.
