The report “Project Leap: Quantum-proofing payment systems” shared the results of a test of post-quantum cryptography in an operational payment system to protect such systems from the potential threat posed by quantum computers, BIS said in a press release.
The test dubbed “Project Leap Phase 2” is a collaboration between the BIS Innovation Hub Eurosystem Centre, the Bank of Italy, the Bank of France, Deutsche Bundesbank, Nexi-Colt and Swift, according to the release.
It used post-quantum cryptography in place of traditional digital signatures while sending liquidity transfers and modified several system components to ensure compatibility with update cryptographic libraries, per the release.
“All test scenarios were successfully executed, demonstrating the feasibility of migrating payment systems to post-quantum cryptography,” the report said. “The tests also revealed significant performance differences between traditional and post-quantum algorithms, pointing at the need for further traditional and post-quantum algorithms, pointing at the need for further testing and preparation before transitioning the financial system.”
Project Leap Phase 2 followed an earlier test in which the BIS Innovation Hub Eurosystem Centre, Banque de France and Deutsche Bundesbank successfully established a secure communication channel designed to protect financial data from quantum computers.
“The project involved transmitting test payment messages via this quantum-resistant VPN (Virtual Private Network) tunnel between servers located in Paris and Frankfurt, thereby demonstrating how critical financial data can be protected,” BIS said in a June 2023 press release about the report “Project Leap: Quantum-proofing the financial system.”
PYMNTS reported in October 2024 that quantum computers capable of cracking current encryption protocols are still in the developmental stage, but experts warn that these machines could become commercially viable within the next decade.
Security experts have adopted the name “Q-Day” for the day when quantum technology has advanced to the point where its commercial applications and availability could be used to compromise and fundamentally undermine the encryption protocols relied upon by corporations, banks and national governments around the world.