Speaker 1: Quantum financial system technology is now heating up in a very large way and is now becoming a big spotlight, especially around some of the largest banks out there. And we have been talking about this for a little bit of time around crypto because it does pertain to crypto in a very large way. And in this video, I am going to be addressing this. Welcome to the channel. Everyone. My name is Nick. For those that are new to the channel, hopefully by the end of this video, you do become a subscriber. So before we take a quick look at this article that got posted back in the middle of May from Ripple, we have quantum computing's impact on blockchain. And this is actually an insight from a professor. Now I went over here and summarize this with chat GPT. And we have Ripple's insight series features discussions with professors from the University Blockchain Research Initiative to explore the current trends in crypto and blockchain. And in this, they were looking at the intersection of blockchain and quantum computing. We have blockchain security challenges. They highlighted the significant vulnerabilities that quantum computing poses to blockchain security, particularly concerning digital signatures that protect assets. He emphasized the importance of developing quantum resistant cryptographic systems to safeguard blockchain technologies from these emerging threats. And we also have advances in cryptographic defenses, the transition to quantum resistant cryptographic algorithms, noting the challenges of integrating these into current systems, including increased computational demands, despite the difficulties. Ongoing research aims to optimize these solutions for practical use. And of course, the role of algebra and coding theory. So algebra and coding theory are pivotal in developing quantum resistant systems. We also have mathematical challenges such as decoding noisy data are integral to creating robust security solutions against quantum threats. And we also have international efforts such as the U.S. NIST standardization process. By the way, this is what Google just implemented. A lot of major companies like Google, there's a few other ones like Amazon, NVIDIA. A lot of them are now looking into quantum technology. And this is for advancing quantum resistant standards. And we have down here that they want to just prepare cryptographers for new challenges by updating, you know, academic curriculum to advocate for quantum resistant cryptography. Now down here, we also have quantum computing timeline and proactive measures. While quantum threats may not be immediate, they do advise that organizations to begin transitioning to quantum resistant technologies. Now he encourages blockchain developers to engage with ongoing standardization efforts to stay ahead. And the insights here underscore the need for readiness in a quantum driven future for blockchain. And building upon this, there was also a great article that got posted just recently. And we have quantum computers and XRP, the future of cryptocurrency. Now in this, we get an insight of the rise of quantum computing because it is now becoming a big deal. And we also have XRP and quantum resistance. So given the potential threat that quantum computing poses to traditional cryptography, cryptocurrencies like XRP are exploring ways to become quantum resistant XRP, which is built on the DLT called the XRP ledger is designed to be fast, scalable digital asset for cross-border payments. While XRP currently uses elliptic curve cryptography for security, the XRP ledger has been exploring the use of quantum resistant signature schemes to protect against potential quantum attacks. By implementing quantum resistant algorithms, XRP aims to future proof its security and ensure the integrity of its transactions in the age of quantum computing. And as we really kind of look at this, right, the future of finance definitely is going to be built around DLT. But I also believe that quantum technologies are going to be crucial because that is the, that's like the big thing right now. So the fact that XRP is already being worked on towards being extremely secure through even quantum resistant technology is a big deal. It's preparing for what's coming. And I think that if you are investing into a project in the space, if it is not getting ready for the quantum financial system, it is going to fall greatly behind. Having this right now and future proofing these ledgers is so crucial to focus on. But also why is this important? Well, let's actually look at a few things. So recently back in November of 2023, you guys already know this, HSBC partnered with Ripple owned Medeco for tokenized securities custody platform. Now we already know that Ripple is pioneering tokenization through and with the XRP ledger. So this is very important to focus on because if we are looking at HSBC, what are they doing right now? Well, over here, we go back to December of 2023, HSBC pioneers quantum protection for AI powered FX trading. Well, why is this important? Well, now if we look at AI powered foreign exchange trading, we also have to look beyond FX. AI powered everything is going to become a reality. Finance itself is going to be automated, but it's also going to be tokenized. So now we have AI converging with blockchain, but also converging with quantum technology. And even over here, we have HSBC and quantum. We're embracing disruptive technologies to enhance our services, protect the bank and our customers and unlock future innovation. Quantum computing could revolutionize financial services in areas like portfolio optimization, fraud detection and cybersecurity. HSBC has joined forces with leading technology providers and research laboratories to investigate the potential of applying quantum technologies to real world problems across the bank. And of course, we have why are we interested? Well, quantum computers promise to deliver a step change in computational power with the potential to tackle highly complex tasks far beyond the capabilities of today's machines. It is estimated that the cutting edge technology could reach 1.3 trillion in value by 2035 with two thirds of these gains to come from financial services. And this is their approach to quantum computing. They break this down. Again, this is with IBM. We already know how big IBM is around crypto. And then you also have two other companies, Fujitsu and Quantum. Now, outside of this, we also have over here from September 19th, just recently, HSBC pilots quantum safe technology for tokenized gold. And there you have it. When we think about what's happening here, tokenization, DLT and quantum are all converging even with AI. If we look down here, we could see last year HSBC was the first global bank to offer tokenized physical gold to institutional investors using DLT. This year saw another first with the launch of HSBC gold token for retail investors in Hong Kong, allowing them to acquire fractional ownership of physical gold. Both launches use the technology of the HSBC Orion digital assets platform. But now we are looking at this with quantum secure technology for buying and selling tokenized physical gold. Guys, do you see what's happening here? Now we're starting to see the real story behind these central bankers massively accumulating gold. They're preparing for a digital system that is quantum secure, utilizing DLT with tokenization. And of course, we mix in AI there for automation. All of this is connected. And also just for everyone out there to remember, David Schwartz, the CTO of Ripple, back in 1988 had a patent for DLT. This was the first insight of distributed ledger technology. It got filed back in 1988 and it got approved back in 1991. That's how far back this system actually goes. All of this has been planned since day one. And if we go over here, we have quantum technology sees record investments, progress on talent gap. This was back in April of 2023. Investors are still looking at quantum technology. Quantum technology is becoming a big, big deal. And you know what's funny? Here we have January 11th of this year, Project Leap. This is quantum proofing the financial system. This is from the BIS with the EU, the Bank de France, and also Deutsche Bundesbank and the Euro system. Why quantum computers represent a cyber threat to financial data. Should they reach sufficient size and power, may be able to break the encryption schemes widely used today to ensure secure financial transactions and data. So now they want to future proof everything, including the entire financial system. And this is because they are preparing for quantum technology. They're preparing for quantum computing. We are moving into the quantum financial system. And this is all through digital technologies, DLT, crypto. But this was back in January, January 11th. Guess what we got after this? A report from the World Economic Forum on January 17th. And this was new report charts roadmap to a quantum secure financial system. Innovations in quantum computing could revolutionize the global financial sector and usher in rapid investment, economic growth, and new complex security risk. Global regulation and collaboration will be critical to mitigate quantum security threats and harness the disruptive potential of emerging technologies, aka DLT AI. With the world on the brink of an unpredictable digital transformation, the World Economic Forum outlines guiding principles to inform and enable a secure future for all. And again, this is the quantum revolution. They even said that a financial sector is on the cusp of a quantum revolution where emerging technologies are predicted to drive sector investment to $19 billion by the 2030s and up to $850 billion over the next 30 years. But all of this is through digital technologies, DLT, tokenization, AI. All of this is tied together. Now the full on roadmap here that they outlined, this is the overview of the roadmap. We have prepare, clarify, guide, and transition, and monitor. And this is adapt and reiterate. This is phase one, which is prepare. And this is with the FINRA and major regulatory bodies. This is key considerations, raise awareness, understand the point of departure, and build internal capabilities. Down here we have clarify. And again, this is with the Monetary Authority of Singapore, which by the way, focus on that because we are going to talk about that here in one second. We have formalize engagement and collaboration, map current regulations, understand the transition. Then we also have the guide. Again, this is with the Swiss Financial Market Authority, address regulatory gaps, enact standards, and then transition and monitor. This is with major, major banks. And by the way, this is the head of quantum and architecture at Crypto and Blockchain COE, Banco Santander. Modernize approaches to cryptography, and then also iterative regulatory development. All of this is preparing for a future financial system that is heavily dominated by crypto, but quantum resistant crypto tech, not just your typical crypto project, quantum resistant crypto technology, AI. And this is where we start to see finance itself completely tokenized on chain, a digital financial system. We have here that all stakeholders must collaborate towards a cyber secure financial sector in the quantum economy. They're literally calling it the quantum economy. And now if we think about this, okay, over here, we have the new quantum technology race back in March of this year with China and Russia collaborating on quantum technologies. The international race for superiority in this field is heating up and Europe is well positioned to keep the pace. So now we have a race being on around quantum technology. This is why we're seeing Standard Chartered keeps faith with quantum experimentation. We already know that Standard Chartered is partnered with Ripple. They have a lot of investments with Ripple. This was July 3rd. The bank is aiming to future proof itself with the ability to adopt new technology at an early stage. By the way, I do believe that quantum technology and quantum proofing is going to surge the price of gold as well. This is also why I say make sure that you have some physical gold. Also Monetary Authority Singapore, there you have it, collaborates with banks and tech firms on quantum security. August 15th, the Monetary Authority Singapore has gathered a consortium of banks and technology partners to study the application of quantum key distribution as a defensive mechanism against the threat posed by super fast computing power. And then of JP Morgan, May 8th, JP Morgan Chase establishes quantum secured crypto agile network. So now we have the proof that quantum resistant crypto technology is going to be the future of the financial system. We are investing in quantum security to help ensure our readiness as quantum technologies are maturing. We are preparing a dual remediation strategy that incorporates both post quantum cryptography and QKD. This deployment of a high speed quantum secured crypto agile network could enable novel security features beyond secure key exchange. Importantly, with this new development, we have taken QKD out of the lab and demonstrated that it can support high speed private networks in production level environments for financial services. All of these major banks, even the elites, the World Economic Forum, the BIS, they are preparing for a heavily dominated financial system through crypto and quantum resistant technology. Do you guys realize what is happening here? The QFS system is now confirmed to be in effect. They're already in the early stages of this. And now we have the largest banks out there like HSBC, JP Morgan, Standard Chartered, they're all preparing for this. And yes, even Ripple is at the forefront of this with XRP, considering the fact that XRP and the XRP ledger is already in the process of implementing quantum resistant algorithms and technology. This is very significant. So with that being said, I hope you guys enjoyed this video. If you guys did, definitely leave a like, subscribe, turn notifications on because I'm a free content. You guys are more than welcome to follow me on Twitter and join the free discord down in the description below. And with that being said, guys, it's been Nick, thanks for watching. Peace out.