New research from Google warns that advances in quantum computing pose a severe threat to cryptocurrency security. The report outlines how future quantum systems could break current encryption, potentially compromising private keys for networks like Bitcoin and Ethereum in minutes. Google has set a 2029 target for transitioning to quantum-resistant cryptographic standards to mitigate this risk.
Security concerns around cryptocurrencies are intensifying after new research warned that advances in quantum computing could undermine the cryptographic foundations securing billions in digital assets. The report highlights how emerging quantum systems may soon be capable of breaking widely used encryption standards.
The findings come at a critical time as institutional investors and governments increasingly embrace digital assets. A successful breach would leave wallets vulnerable to theft and undermine trust in blockchain infrastructure.
Google’s research outlines a scenario where cryptographically relevant quantum computers could decrypt both public and private keys. This would allow attackers to gain control of wallets and execute fraudulent transactions.
The report focuses on blockchains using the 256-bit elliptic curve discrete logarithm problem. It estimates a sufficiently advanced quantum system, with roughly 1,200 to 1,450 logical qubits, could break this encryption in minutes.
Such a system could compromise Bitcoin private keys in under nine minutes, faster than the network’s average block time. In Ethereum‘s case, attackers could access up to 1,000 wallets in roughly nine days.
“This represents an approximately 20-fold reduction in the number of physical qubits required,” the researchers noted. Google estimates approximately 6.7 million Bitcoin addresses are currently among the most vulnerable.
In response, Google has set a 2029 target for transitioning toward post-quantum cryptographic standards. The shift would involve replacing existing encryption with quantum-resistant alternatives across blockchain networks.
However, the transition is expected to be complex and time-intensive. It will require coordinated upgrades, changes to wallet infrastructure, and new policies addressing dormant or vulnerable addresses.
“While viable solutions like post-quantum cryptography exist, they will take time to implement, increasing the urgency to act.” Additional mitigation measures include discouraging address reuse and identifying exposed wallets.
Projects that fail to adapt could face both technical and market consequences. Beyond exploitation risk, delayed upgrades may trigger declining valuations and increased fear, uncertainty, and doubt among investors.
Data from Google Trends indicates that Asian countries show the highest concern for “post-quantum cryptography.” South Korea, China, and Singapore are leading search interest.
