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A Banker's Guide to Quantum Safe Cryptography

Part 2: Roadblocks to PQC Migration and Strategic Solutions for Financial Institutions

WP2 COVER

Financial institutions in Europe face an urgent dual mandate: migrate to post-quantum cryptography (PQC) to counter looming quantum threats, while complying with new regulatory standards that demand stronger cryptographic controls.  

Upcoming EU regulations like the Digital Operational Resilience Act (DORA) and NIS2, as well as industry standards such as PCI DSS 4.0, require banks and payment providers to upgrade their encryption practices and demonstrate rigorous key management. 

All this is happening as quantum computing advances raise the risk of “harvest now, decrypt later” attacks, wherein adversaries steal encrypted data today to decrypt once quantum capabilities mature. This risk is highlighted by NIST and CISA guidance. The EU’s coordinated PQC roadmap asks Member States to start transition activities by end-2026 and to secure high-risk systems, including critical financial infrastructure, with PQC by end-2030. It also signals completing as much of the remaining transition as feasible by 2035. 

Outside the EU, the NSA’s CNSA 2.0 guidance sets category-based milestones for migrating away from classical algorithms; these are informative for multinational institutions rather than binding on EU entities.  

In short, the clock is ticking for banks to achieve crypto agility – the ability to swiftly swap and upgrade cryptographic algorithms – and to modernize their key management across fragmented on-premises and cloud systems. 

This white paper examines in three parts:  

  1. The regulatory drivers behind this push.
  2. The challenges financial institutions face (from crypto‐inventory fragmentation and talent gaps to audit fatigue, tight deadlines, and HSM and cloud exit-strategies).
  3. Strategic solutions to navigate the transition.

We emphasize practical approaches such as establishing a centralized, crypto-agile key management program, adopting hybrid classical–PQC encryption schemes, and preparing governance and infrastructure for a post-quantum era.  

Throughout, we reference guidance from trusted authorities – including EU bodies (ENISA, European Commission), NIST and NSA in the US, industry standards like PCI DSS, and customer insights – to provide a clear roadmap. While avoiding excessive cryptographic detail, we note the key PQC algorithms (e.g. ML-KEM, ML-DSA) emerging as standards and their rollout status in regulations. Crucially, we discuss how solutions such as CrystalKey 360 can play a role in unifying cryptographic estates and enabling crypto agility without major disruption, helping firms meet compliance and security objectives concurrently. 

In summary, financial CISOs, Heads of Cryptography, and Security Architects should treat PQC migration as a near-term priority intertwined with compliance. By investing in crypto-agile architectures and centralized key management now, organizations can future-proof their cryptographic controls against quantum threats and streamline audits under DORA, NIS2, PCI DSS 4.0, and beyond. The following three parts provide a detailed analysis of the regulatory landscape, the anticipated challenges, and a strategic plan for navigating the post-quantum transition in a compliant, resilient manner.