Europol Urges Crypto Wallet Providers to Start Testing Post-Quantum Upgrades Now

Europol published two reports on Wednesday about the security risks of quantum computing, and the one on cryptocurrencies names wallets as the most exposed part of the system. The agency urged organizations, policymakers and the crypto industry to "begin preparing now."

Europol's European Cybercrime Centre wrote in its report that the keys controlling wallets and authorizing transactions are the "primary point of exposure." A quantum computer with enough power could work out a wallet's private key from its public key, letting an attacker spend the funds. The hash functions that secure the blockchain itself remain "largely resistant" to quantum attacks, Europol said in the report.

Such machines do not yet exist, and Europol said in its press release that the timing of those capabilities "remains uncertain." Unchained reported in April that a Google paper put 2029 as the year quantum computers could crack the cryptography securing Bitcoin and Ethereum.

No Collapse Expected

The report concluded that "Cryptocurrencies will not collapse due to quantum computing," adding that their long-term security "requires proactive defence." Among its key findings: "Proactive adaptation, rather than systemic collapse, is the most likely outcome."