Quantum Computing-Based Banking System

Ayush Singh

Dylan Herman, Cody Googin, Xiaoyuan Liu +5 more

Hang Li, Tonghao Xing, Shijie Wei +3 more

The power of quantum computing may bring a revolution in finance and banking. Here, we present quantum software, BQ-Bank for option pricing, Value at Risk, portfolio optimization, and others. BQ-Bank can be run on a real quantum computer such as superconducting system or on an emulation system based on a classical computer with an interface. BQ-Bank, such as other quantum types of software, represents a new generation of the toolbox that likely brings disruptive innovations to the financial industry and banking market in the future. BQ-Bank also provides the classical Monte Carlo solution, so that users can compare their quantum results with classical ones directly. Our simulation results for a variety of examples show the superiority of quantum solutions.

Oswaldo Zapata

Arjun Shivarudraiah

Quantum computing has emerged as a transformative technology that holds the potential to revolutionize various industries, including banking. As quantum computers continue to advance, they pose significant risks to existing encryption methods that secure sensitive financial data. Traditional cryptographic systems, such as RSA and elliptic curve cryptography (ECC), are foundational to modern banking security; however, these methods rely on mathematical problems that quantum algorithms, notably Shor's Algorithm, could solve exponentially faster than classical computers. This paper explores the impact of quantum computing on banking encryption systems and discusses the urgent need for post-quantum cryptography. We examine the vulnerabilities of current banking encryption protocols, the status of quantum-safe cryptographic algorithms, and strategies for implementing quantum-resistant systems in the financial sector. The transition to post-quantum security requires collaborative efforts among financial institutions, regulatory bodies, and quantum computing researchers to ensure a secure and efficient implementation of future-proof encryption standards. This paper emphasizes the importance of early adoption and the proactive steps required to safeguard banking systems against the imminent quantum threat

Isaiah Hull, Or Sattath, Eleni Diamanti +1 more