Project Leap

Project Leap aimed to prepare central banks and the global financial system for a transition towards quantum-resistant encryption.

Quantum computers, should they reach sufficient size and power, may be able to break the encryption schemes widely used today to secure financial transactions, communication and data. This makes quantum computing one of the most significant cybersecurity threats facing the financial system, potentially exposing financial transactions to attack.

While it is still unclear when quantum computing technology might be adopted on a large scale, its potential as a cyber threat to the financial system is already a matter of concern. Malicious actors can intercept and store confidential, classically encrypted data with the intention of decrypting it later when quantum computers become powerful enough to do so. This means that data stored or transmitted today are, in fact, exposed to "harvest now, decrypt later" attacks by a future quantum computer.

To address these risks, the financial sector needs to pre-emptively implement robust communication and data protection technologies. Given the long-term sensitivity of financial data and the complexity of IT systems, a transition phase should be initiated well in advance so that quantum-resistant encryption schemes can be implemented.

The BIS Innovation Hub and its partners have successfully completed two phases of Project Leap.

Leap Phase 1, a collaboration between the BIS Innovation Hub, Bank of France, and Deutsche Bundesbank, tested the implementation of post-quantum cryptography between two central bank IT systems. A traditional public key algorithm was implemented alongside quantum-resistant algorithms in a hybrid encryption scheme, achieving quantum-resistant confidentiality of payment messages sent across two distanced IT systems. The project demonstrated that implementing quantum-safe cryptography in the financial system is feasible and identified performance impacts and the need for more testing.