The Hong Kong Monetary Authority (HKMA) has published a new report assessing the banking industry’s readiness for quantum computing, along with the launch of its first Quantum Preparedness Index.

Hong Kong’s central bank is highlighting the sector’s limited progress in preparing for the security challenges that could emerge from advanced quantum technologies.

The HKMA’s assessment, released on Monday, gave the city’s banking industry a score of just 2.3 out of 10, indicating that most financial institutions remain in the early stages of understanding quantum-related risks.

The report was unveiled at the eighth FiNETech conference and was based on a survey conducted earlier this year. While it found that awareness of quantum threats is increasing, banks have made relatively little progress toward implementing practical solutions.

About 68% of surveyed banks had either begun developing awareness, creating preparation plans, or testing early-stage solutions. However, many institutions have yet to establish concrete strategies. Nearly half of respondents have not developed a formal roadmap for migrating to post-quantum cryptography. Although quantum risks have reached board-level discussions at around half of the banks surveyed, only one-third have started experimenting with quantum technologies or security measures.

The results show that Hong Kong’s banking sector remains focused on evaluating potential risks rather than building full-scale quantum capabilities. The HKMA’s index measures readiness across four phases: awareness, planning, pilot projects, and practical implementation.

Quantum preparation has become increasingly important because future quantum computers could threaten the encryption systems that currently protect global financial infrastructure. Banks are especially vulnerable to “harvest now, decrypt later” attacks, where attackers collect encrypted information today and attempt to decode it in the future when quantum technology becomes powerful enough.

The same concern applies to blockchain networks, including Bitcoin and Ethereum, which depend on cryptographic protections that could eventually face challenges from advanced quantum computing.

Although no existing quantum machines can currently break modern banking security or blockchain encryption, some estimates suggest that such capabilities could become possible as early as 2029.

The HKMA has set an objective of reaching a perfect 10 score on its Quantum Preparedness Index by 2030. To support this effort, the regulator is developing a post-quantum cryptography toolkit in partnership with the Hong Kong University of Science and Technology’s business school. It also plans to conduct workshops to help banks improve technical knowledge, enhance cryptographic flexibility, and explore quantum applications responsibly.

Hong Kong’s preparations reflect a broader global effort to address quantum-related risks. In the United States, President Donald Trump recently signed two executive orders focused on quantum technology and cybersecurity. One aims to accelerate U.S. quantum computing development with a goal of achieving advanced scientific capabilities by 2028, while the other directs federal agencies to transition toward post-quantum cryptography between 2030 and 2031.