EU Regulators Warn Quantum Computing Threatens $586 Billion in Bitcoin

quantum computing threatens Bitcoin — European financial watchdogs have issued a stark warning that the rise of quantum computing poses an imminent threat to the cryptographic security underpinning blockchain networks, potentially endangering billions of dollars in Bitcoin holdings.

The European Securities and Markets Authority (ESMA) released a report highlighting the risk that advanced quantum computers could eventually break the public-key cryptography that secures digital assets. The agency estimates that approximately 6.9 million Bitcoin, valued at around $586 billion, could be vulnerable.

The threat is particularly acute for older or reused Bitcoin addresses where the public key is already exposed on the blockchain. Once a public key is visible, a sufficiently powerful quantum computer could theoretically derive the corresponding private key, granting access to the funds.

The warning from ESMA and the European Banking Authority brings renewed urgency to the long-standing debate within the crypto community about “crypto-agility”—the need for networks to transition to quantum-resistant encryption algorithms. The report suggests the threat could materialize before quantum computing reaches broad commercial viability, urging the financial sector to begin preparedness assessments immediately.