European Watchdog Says Quantum Computers Pose Threat To Blockchain

A prominent European watchdog is warning that quantum computers pose an imminent threat to blockchain encryption.

The Joint Committee of the European Supervisory Authorities has warned that an advanced quantum computer could undermine cryptography used to secure blockchains.

The agency adds that the threat could emerge before quantum computers have a viable commercial application.

Cryptography is the practice of encoding and decoding information so that only authorized people can read or use it.

The Joint Committee of the European Supervisory Authorities is comprised of the European Banking Authority (EBA) and European Securities and Markets Authority (ESMA).

Analysts have been quick to say that the warning gives new urgency to the need for Bitcoin (CRYPTO: $BTC) and other digital assets to provide safeguards against quantum computers.

About 6.9 million Bitcoin, worth $586 billion U.S., are vulnerable to having their cryptography broken by quantum computers, according to a study by Cryptoquant.

The European Joint Committee says in a report that quantum computers "could undermine some cryptography systems widely used to secure communications, transactions, databases and blockchains."

A recent IBM (NYSE: $IBM) report says quantum computers will be commercially viable within four years or less.