Even encrypted data that is safe today can be stored for later decryption once a working quantum computer of sufficient capacity becomes available.” That said, quantum-computing security represents the safest form of cryptography available, which means that security defences can be developed that are up to the task of rebuking these sophisticated threats. 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Malaket (@ARMalaket_OPUS), President, OPUS…, The European Bank for Reconstruction and Development: A Strong and Reliable Partner Applying emerging quantum technology to financial problems 1. In turn, this means quantum computers can hold more data through qubits than what a classical computer can hold via traditional bits. 1. The 50’s saw the rise of digital, or classical computing, which has known tremendous … For example, an investment manager wanting to rebalance a portfolio currently has to incur fairly sizeable costs for doing so. Contact us | “A classical computation is like a solo voice—one line of pure tones succeeding each other. At some point during the coming decade, it is expected that quantum computers will begin to surpass the capabilities of classical computers. This has led to a computing arms race among them, where bigger profits result from analyzing a … And while the processing power of these classical computers has come a long way, a vastly different computing technology involving quantum mechanics has been steadily developing since the early 1980s. Classical computers are simply not capable of identifying optimality over such horizons, so financial institutions could ultimately save enormous amounts of money by switching to quantum computing. Given these clear advantages, therefore, quantum computing has powerful implications for solving problems that have persisted in the finance world for many years, if not decades. Advertise | Careers | Editorial Guidelines | Finally, we consider quantum amplitude estimation, and how it can result in a quantum speed-up for Monte Carlo sampling. 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DeFi: Behind the Latest Revolution in Crypto, Operational Resilience in Financial Services. A quantum computer is thus able to process a large number of combinations simultaneously, whereas a traditional computer has to process them sequentially, which is both slower and more energy-intensive. In the fields of finance and economics, quantum computing could lead to analyzing a large space of heterogeneous data to make financial and predictions and understanding economic … And with some of the world’s most-renowned financial institutions recently linking up with quantum-computing companies to gain the early-mover advantage, it would seem that anticipation over this potentially transformational emerging technology within the financial-services industry is only just beginning to heat up. By Kevin Martin, Global COO and Head of Digital Tran…, Interview with Mr. Johan Thijs, Group Chief Executive Officer, KBC Group. A quantum computer, however, could identify a portfolio that remains optimal over a much longer time horizon, meaning that the frequency of rebalancing could be greatly reduced. IBM has already published a paper that showcases a quadratic accelerated version of Monte Carlo simulations. Copyright © International Banker 2020 | All Rights Reserved Subscription | About us | Copyright © 2020 Elsevier B.V. or its licensors or contributors.