Hong Kong’s HKMA Launches Quantum Preparedness Index to Safeguard Finance

3 Feb 2026 – Hong Kong’s central bank unveils a “Quantum Preparedness Index” to gauge how ready its banks are for the quantum computing era, underscoring a global push among regulators to future-proof financial security.

Hong Kong’s de facto central bank, the Hong Kong Monetary Authority (HKMA), has announced the launch of a Quantum Preparedness Index (QPI) as part of its new Fintech Promotion Blueprint unveiled in early February 2026. The QPI is a first-of-its-kind initiative aimed at assessing how prepared the city’s banking sector is for the age of post-quantum cryptography (PQC) – the next generation of encryption designed to withstand attacks from powerful quantum computers. In essence, the index will provide a comprehensive snapshot of banks’ current readiness and establish a measurable roadmap for improvement in the coming years. By doing so, the HKMA intends to identify gaps, set targets, and guide practical support for banks through the transition to quantum-safe security.

Why Quantum, Why Now? Quantum computers promise to solve complex problems unimaginably faster than today’s machines, a boon for innovation – but they also pose an existential threat to classical encryption. Financial systems worldwide rely on cryptographic algorithms (like RSA and ECC) to secure everything from online banking and payments to confidential communications. The concern is that a sufficiently advanced quantum computer could crack these algorithms, exposing sensitive data. “Computing equals productivity now… But we can’t sacrifice security while making innovations,” cautioned Arthur Yuen, Deputy Chief Executive of the HKMA. Hong Kong’s regulators are treating quantum risk as urgent rather than hypothetical: Experts estimate it may be 5–10 years before quantum machines can break today’s encryption, but “it [is] important to prepare now,” emphasized Carmen Chu, the HKMA’s Executive Director of Banking Supervision. This forward-looking stance is why the new QPI is seen as more than a checkbox exercise – it’s about baking future encryption resilience into Hong Kong’s financial infrastructure before “Q-Day” arrives.

Inside the Quantum Preparedness Index: According to the HKMA’s blueprint, the QPI will evaluate multiple facets of quantum readiness across banks. It will likely examine whether banks have inventoried their cryptographic systems and begun adopting quantum-safe algorithms, how far along they are in upgrading or replacing vulnerable systems, and their ability to maintain crypto-agility (the capacity to swap cryptographic algorithms with minimal disruption). The HKMA explicitly frames the QPI as providing “a comprehensive current-state analysis” of the sector’s preparedness, while also serving as “a measurable target for the next few years”. In other words, it’s both a report card and a strategic roadmap: a tool to benchmark progress year by year. Industry observers note that Hong Kong’s proactive approach reflects a broader reality – that quantum-safe infrastructure must be in place long before the first quantum attacks occur.

Global Context – A Quantum Tech Arms Race: The HKMA’s quantum readiness push puts Hong Kong among a small vanguard of financial regulators planning for this paradigm shift. In Singapore, the Monetary Authority of Singapore (MAS) issued an advisory back in February 2024 urging banks to start transitioning to post-quantum cryptography and even piloted quantum key distribution trials with industry partners. In Europe, the European Central Bank (ECB) has flagged post-quantum readiness as a priority within its cyber-resilience agenda, calling on banks to assess where legacy encryption might be vulnerable. Meanwhile, in the United States, the National Institute of Standards and Technology (NIST) has been racing to set new cryptographic standards: in 2024 NIST finalized its first batch of PQC algorithms (such as CRYSTALS-Kyber for encryption and CRYSTALS-Dilithium for digital signatures), providing a blueprint for governments and industries to start adopting quantum-safe encryption. Regulators worldwide are increasingly aligning on the message that financial institutions must begin planning migrations now, well before any mandated deadlines. The Bank for International Settlements – the “central bank of central banks” – has likewise warned that delays in pivoting to quantum-safe tech could undermine the confidentiality and integrity of financial data. In short, Hong Kong’s QPI arrives amid a global awakening: quantum readiness is swiftly moving from a best-practice recommendation to a expected component of financial compliance.

Implications for Banks and Tech Stakeholders: For Hong Kong’s banks, the Quantum Preparedness Index will serve as both a barometer and a motivator. It translates an abstract threat – quantum computing – into concrete metrics that bank executives and risk officers can act on. By scoring or assessing each institution’s preparedness, the HKMA can spotlight leaders and laggards in quantum readiness, encouraging industry-wide uplift. This comes with strategic advantages: banks that upgrade to quantum-resistant encryption early can assure customers that their data will remain safe even in the next era of computing, potentially gaining a competitive edge in trust. On the technology front, firms providing cybersecurity, cloud services, and fintech solutions will need to align with these expectations. If Hong Kong’s regulators are setting quantum safety benchmarks, tech vendors will be expected to support PQC and crypto-agility in their products to help banks meet the new index targets. Financial institutions, tech leaders, and quantum security experts alike are applauding the HKMA’s foresight, seeing it as a template that other jurisdictions might follow. By formally acknowledging quantum risk and operationalizing it through an index, the HKMA is essentially signaling to the market: get ready for the quantum future, or risk being left behind.

The QPI is part of a broader fintech roadmap (which also includes initiatives on AI-driven data strategy, a fintech cybersecurity baseline, and talent development), but it has arguably the most far-reaching implications. It touches the fundamental trust layer of finance – security and data integrity. As global finance grapples with fast-moving innovations, Hong Kong is choosing to lead by example in the quantum security arena. “The future of finance will be defined by those who can harness sophisticated technology… not only to improve existing processes, but to reimagine what is possible,” Arthur Yuen noted in the blueprint’s release. By marrying that ambitious vision with caution and cryptographic preparedness, Hong Kong’s central bank is making a clear statement: innovation must go hand-in-hand with security. With the Quantum Preparedness Index, the HKMA is not just reacting to a future threat – it’s setting the stage for a new standard of resilience in the digital banking age.