SEBI Chairman Warns of Quantum Computing's Threat to Financial Security

At the Global Fintech Fest 2025, Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (SEBI), expressed concern over the potential threats posed by quantum computing to digital security systems. He highlighted that cryptography, the backbone for password security, could become vulnerable with the advent of quantum technology.

Cryptography, essential for securing information through codes, ensures confidentiality and prevents unauthorized access. However, quantum computing, leveraging principles like superposition and entanglement, surpasses classical computation, handling complex problems in fields like medicine and AI. Pandey stressed the urgency of developing cryptography-proof solutions in anticipation of quantum advancement.

During a keynote titled 'Resilient and Inclusive Capital Markets in a Tech-Driven World,' Pandey elaborated on how technology has redefined the Indian securities market. From account setups to market supervision, tech-driven reforms enhance market resilience, with core priorities being investor protection and effective regulation. He emphasized the importance of speed and safety in market growth, advocating for a collaborative and trust-focused approach.