Mumbai, Oct 8 Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (SEBI), warned on Wednesday that the rise of quantum computing could potentially break cryptography-based encrypted passwords, which are currently used to secure digital systems.
Speaking to the media on the sidelines of the Global Fintech Fest 2025, Pandey said, “There is ongoing research into quantum-safe computing, and quantum computing will eventually arrive.”
“This could compromise conventional cryptography, which forms the basis of crypto security. Even passwords generated through cryptography could be broken. This means we will need to change the way we create and protect passwords,” he stated.
He likened the potential impact to the Y2K movement, where systems required adjustments as the year changed from 1999 to 2000.
“Passwords generated through current cryptographic methods could be vulnerable to quantum computing. Wherever cryptography is used for security, preparations will be needed to implement quantum-proof passwords, also referred to as post-quantum cryptography,” Pandey added.
The SEBI chief also highlighted that some fintech companies are already leveraging blockchain technology.
“We have set up a regulatory sandbox where these companies can demonstrate the various applications of blockchain within fintech,” he said.
Earlier, in a different event, Pandey had pointed out that while digital infrastructure has made markets more accessible, it has also equipped fraudsters with new tools to deceive investors.
“Capital markets are a key engine of our country’s growth, and it is our collective responsibility to ensure that this engine runs on a foundation of integrity and transparency,” he emphasised.
Speaking earlier this week at the 'world investor week 2025', Pandey said “while digital infrastructure has brought the markets to our fingertips, it has also armed fraudsters with new tools to deceive investors as unsolicited messages on messaging applications, dubious influencers and fake trading apps and websites promise the one thing that our markets can never offer -- guaranteed returns.”
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