Learning Objectives:

  • Understand the objectives and findings of the BIS Innovation Hub’s Project Leap.

  • Analyse the technical feasibility and challenges of implementing PQC in payment systems.

  • Recognise the importance of central bank collaboration in quantum-safe migration.

  • Apply lessons from Project Leap to central bank quantum preparedness.

6.1 Project Leap Overview

The BIS Innovation Hub’s Project Leap aimed to prepare central banks and the global financial system for a transition towards quantum-resistant encryption . Project Leap was designed to address the cyber threat that quantum computers pose to financial data, particularly in payment systems .

The project was conducted in two phases:

Leap Phase 1: A collaboration between the BIS Innovation Hub, the Bank of France, and the Deutsche Bundesbank that tested the implementation of post-quantum cryptography between two central bank IT systems . A traditional public key algorithm was implemented alongside quantum-resistant algorithms in a hybrid encryption scheme, achieving quantum-resistant confidentiality of payment messages sent across two distanced IT systems . The project demonstrated that implementing quantum-safe cryptography in the financial system is feasible, while also identifying performance impacts and the need for more testing .

Leap Phase 2: A collaboration between the BIS Innovation Hub, the Bank of Italy, the Bank of France, the Deutsche Bundesbank, Nexi-Colt, and Swift that tested post-quantum cryptography in an operational payment system . The experiment replaced traditional digital signatures with post-quantum cryptography while sending liquidity transfers, demonstrating the feasibility of quantum-proofing payment systems .

6.2 Key Findings

Feasibility: The two successful technical experiments demonstrated the feasibility of implementing post-quantum cryptography in central bank payment systems . The project demonstrated that post-quantum cryptography can be successfully implemented in payment systems .

Performance Challenges: The experiments highlighted that post-quantum cryptography leads to significantly higher processing time than traditional algorithms, which will need to be taken into consideration when planning migration . Modifying numerous system components was necessary to ensure compatibility with updated cryptographic libraries .

Collaboration is Essential: Project Leap Phase 2 highlighted the importance of collaboration across institutions . Migrating payment systems to quantum-safe solutions is a complex and high-stakes process that affects the entire financial ecosystem.

6.3 Lessons for Central Banks

Project Leap provides valuable lessons for central banks preparing for quantum-safe migration:

Start Early: Given the long-term sensitivity of financial data and the complexity of IT systems, a transition phase should be initiated well in advance so that quantum-resistant encryption schemes can be implemented .

Conduct Testing: Testing is essential for understanding the performance and integration challenges of PQC. All test scenarios in Project Leap were successfully executed, demonstrating the feasibility of migrating payment systems to post-quantum cryptography .

Collaborate: Cross-institutional collaboration is essential for effective quantum-safe migration. Project Leap underscores the commitment of central banks to proactively safeguarding the integrity and resilience of financial infrastructures .

Plan for Agility: The project identified interoperability considerations and the importance of cryptographic agility as standards evolve .

 

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