The financial sector is preparing for the disruptive impact of quantum computing on current encryption methods. Cryptographic agility, or _crypto agility_, is the ability to swiftly replace cryptographic algorithms when they become insecure. As quantum computers threaten to break widely-used algorithms like RSA and ECC, the financial industry must adopt a strategy that ensures long-term security. ### The Need for Crypto Agility Quantum computing will enable the decryption of encrypted financial data, posing significant risks. The sector has faced multiple cryptographic transitions in the past, including the shift from DES to AES and SHA-2. However, quantum-resistant algorithms are expected to develop in staggered phases over the next decade, requiring continuous updates. ### Key Transition Elements To achieve crypto agility, financial institutions need to: - **Inventory cryptographic assets**: Identify algorithms in use, where keys are stored, and potential vulnerabilities. - **Adopt a central management model**: Implement _crypto-as-a-service_, allowing seamless algorithm updates across systems without major disruptions. - **Prioritize high-risk assets**: Focus on the most vulnerable areas first. ### Challenges The transition is complex due to the deep integration of cryptography within software and hardware. Cryptography is often hardcoded, and developers may lack the necessary expertise. Moreover, third-party vendor dependencies can slow down the adoption of new algorithms. Collaboration across the entire financial ecosystem is essential to maintain security. ### So What? For financial institutions, crypto agility is a must. It ensures resilience against quantum computing threats, protects data, and maintains operational integrity. Investing in crypto agility now will safeguard the future of financial transactions in the quantum era. --- ![[A4 - 2 (2).svg]]