As data increasingly shifts to digital formats, securing that information through encryption has become essential.
On Tuesday, August 13, the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) announced the completion of a pivotal set of encryption algorithms after an eight-year development process. These algorithms are specifically designed to withstand cyberattacks from quantum computers, offering a measure of reassurance to businesses facing sophisticated cyber threats.
While some might question the urgency of post-quantum (PQ) cryptography—especially given that fully operational quantum computers remain largely theoretical and seemingly a decade away—the significance of PQ standards lies in their enhanced security. By design, post-quantum measures are more robust, adaptive, and resilient compared to classical encryption methods.
The introduction of PQ protocols is poised to elevate security practices across various sectors. Their standardization is expected to influence payments, commerce, and the financial industry nearly as much as quantum computing itself when it eventually becomes a reality.
“The advancement of quantum computing is critical in maintaining America’s position as a global tech leader and safeguarding our economic future,” said Deputy Secretary of Commerce Don Graves. “NIST’s expertise is crucial in crafting innovative solutions to the challenges posed by quantum technologies, including the development of post-quantum cryptography to protect our future digital infrastructure. As this important work progresses, we are committed to continuing Commerce’s leadership in this vital area,” he added.
Among the three NIST standards, one focuses on general encryption for data transmission over public networks, while the other two secure digital signatures, which are vital for authenticating online identities—key components of the future digital economy.
The agency urges cybersecurity professionals to begin integrating these new algorithms into their systems as soon as possible.
Post-Quantum Cryptography and Payments
The emergence of the quantum internet promises vast opportunities for payments and commerce but also introduces significant risks and challenges for businesses.
Michael Jabbara, Visa’s global head of fraud services, highlighted last March the rising threat of cybercriminals who are already stealing and storing encrypted data, anticipating the future availability of quantum computing tools to crack it. This strategy is known as “harvest now, decrypt later” (HNDL).
To counter such threats, companies are beginning to enhance their encryption systems. For instance, in February, Apple announced upgrades to its iMessage encryption to defend against potential quantum attacks. Similarly, in September, the encrypted messaging app Signal added support for the post-quantum cryptographic protocol PQXDH. More recently, in May, Zoom made post-quantum end-to-end encryption (E2EE) available globally across its platform.
“Quantum computing could revolutionize our ability to address complex societal issues, but these new standards underscore NIST’s commitment to ensuring it doesn’t simultaneously compromise our security,” said Under Secretary of Commerce for Standards and Technology and NIST Director Laurie E. Locascio, in a statement announcing NIST’s finalized standards. “These standards are the culmination of NIST’s efforts to protect our confidential digital information.”
The three algorithms standardized by NIST are grounded in mathematical challenges that are difficult for both classical and quantum computers to solve. Their adoption signals a turning point in modern cybersecurity.
“NIST has provided detailed instructions for integrating these standards into products and encryption systems,” said NIST mathematician Dustin Moody, who leads the PQC standardization project. “We strongly recommend that system administrators start implementing them now because full integration will take time. There’s no reason to wait—begin using these three algorithms immediately to ensure preparedness for potential attacks.”
As highlighted by PYMNTS Intelligence, a core challenge now facing the financial services and banking sectors is the need to harness new technologies while also mastering the security necessary to protect them.
As advanced financial services continue to evolve, the ability to effectively secure them will likely become a critical factor for banks and financial institutions, serving as a key indicator of their ability to attract and retain customers in an increasingly digital world.
