Europol has urged the cryptocurrency industry to begin preparing now for the potential risks posed by quantum computing, warning that waiting until the technology becomes powerful enough could leave digital assets and sensitive information exposed.
The European Union Agency for Law Enforcement Cooperation published two reports on October 7 examining the potential impact of advances in quantum computing on cryptocurrencies and encrypted data.
While there is still no certainty when quantum computers will become capable of breaking widely used cryptographic systems, Europol said organizations should not delay preparations.
Updating existing systems, developing new security standards, and coordinating upgrades across decentralized networks could take considerable time.
The agency is calling for a phased transition toward post-quantum cryptography, with security systems designed to withstand attacks from both conventional and quantum computers. It also highlighted the importance of “crypto-agility,” allowing organizations to change cryptographic technologies as threats and standards evolve.
Crypto Wallets Face the Greatest Quantum Risk
Europol’s report on quantum computing and cryptocurrencies identifies the cryptographic keys used to control wallets and authorize transactions as the sector’s primary point of exposure.
A sufficiently powerful quantum computer could potentially derive a private key from an exposed public key. If successful, an attacker could gain control of a wallet and transfer its funds without the owner’s permission.
However, not every part of blockchain technology faces the same level of risk. Europol noted that the hash functions supporting important aspects of blockchain integrity are comparatively resistant to quantum attacks.
This means security efforts should focus particularly on vulnerable cryptographic keys and wallet infrastructure.
The agency is therefore recommending stronger wallet security and improved key management as early priorities. Blockchain developers, wallet providers, policymakers, and users will all need to coordinate their efforts as networks gradually adopt quantum-resistant technologies.
“Blockchain developers, wallet providers, policymakers and users all have a role to play. Coordinating upgrades across decentralised networks will be a particular challenge, making early preparation essential,” the report stated.
Encrypted Data Could Face a Future “Harvest Now, Decrypt Later” Threat
Europol’s second report, prepared with the University Carlos III of Madrid, focuses on the growing concern known as “Harvest Now, Decrypt Later.” Under this approach, attackers collect encrypted information today and store it with the intention of decrypting it once more powerful computing technology becomes available.
The threat could affect information that needs to remain confidential for many years, including government communications, intellectual property, medical records, and law-enforcement information.
Europol said there is currently no clear evidence that the technique is being systematically used at scale, but the potential long-term risk should not be ignored.
The agency recommends identifying sensitive assets, limiting unnecessary data retention, replacing outdated security protocols, improving key management, and testing post-quantum solutions in phases.
For the cryptocurrency industry, the message is increasingly direct: the exact arrival of powerful quantum computers may be uncertain, but the preparations needed to protect digital assets cannot wait until the threat becomes immediate.
