and crypto - assets – as the two techniques of key encapsulation and digital signature currently used are both based on asymmetric encryption, which is vulnerable to the quantum threat. it will be of outmost importance to factor in the risks stemming from quantum computing when designing the central bank digital currencies. this risk is already on the table with the practice of'harvest now, decrypt later'used by malicious actors. information embedded in contracts currently in force needs to be kept secret for years to come. even just the possibility that some of it will be exposed – as soon as the technology becomes available – is already a potential blow to trust. 2 / 5 bis - central bankers'speeches 2. the state of the art : one problem, many potential technical approaches as we will see through the lunch session, some solutions to mitigate cyber issues are already available. the heart of cybersecurity lies in cryptography, which – from encrypting data to securing online transactions – is the guardian of our digital world. as the financial industry and governments prepare to protect against quantum threats, it is necessary that they become'crypto - agile ', adopting a multifaceted security strategy that incorporates a range of easily upgradable quantum - resistant solution. the showcase exercise that will be performed in this session will demonstrate that there are two different but complementary approaches that can be used in order to deal with quantum - safe cryptography. on the one hand, we can take advantage of quantum properties to establish secure communication channels between parties, where any attempt to eavesdrop or intercept the exchange of encryption keys is detected. on the other hand, considering that the cryptography involves the use of mathematical algorithms to transform readable data into encrypted data and vice versa, it is possible to replace the current algorithms ( unbreakable now, but solvable with quantum computing ) with others that are more difficult to solve, even for a quantum computer. each one of these technologies – or a combination of them – will allow full end - to - end security in our digital communications. at the same time, however, these technologies are all extremely demanding in terms of time and resources. at the current state of the technology, embracing the quantum physics approach is estimated to impose costs of a higher order of magnitude, though it appears to provide a definitive solution to the quantum threat. the showcase exercise will demonstrate how some solutions already available to the market work, leveraging the points

. other multinational institutions already involved in the adoption of quantum technologies in the financial system, such as the bis and the standard setting bodies, could contribute proactively in defining guidelines and standards as cornerstones of the migration. due to their critical role, financial markets and payment infrastructures, including those that will be supporting the central bank digital currencies, deserve particular attention. the cpmi - iosco could be the right organization to lead the work for the quantum resilience of these crucial nodes of the financial system. * * * let me conclude by thanking you all for gathering today to discuss this extremely important topic. hopefully, the discussion that we initiated today will continue in a fruitful way in the immediate future to deliver as quickly as possible a migration roadmap which can be embraced by all g7 members and possibly also shared with g20 and other countries for wider adoption. * i would like to thank silvia vori, valerio paolo vacca, giuseppe bruno, lorenzo bencivelli, mauro de santis, cristina andriani, sabina marchetti, antonio castellucci and giovanna piantanida for their contributions to this speech. 1 mckinsey & company, quantum technology monitor, 2023. 5 / 5 bis - central bankers'speeches