Threat of Quantum Computing to Cryptocurrencies and National Security | Chinese companies on U.S. Department of Commerce BIS Entity List

The Biden Administration has blacklisted eight Chinese quantum computing companies over concerns that the technology they possess poses a threat to national security.

These companies have been added to the U.S. Department of Commerce’s Entity List, a tool used by the Bureau of Industry and Security (BIS) for national security purposes.

According to the Commerce Department, 27 new entities were added to the list for various reasons, while the eight Chinese entities were added specifically for risks regarding quantum computing technology.

“Eight technology entities based in the People’s Republic of China (PRC) are being added to the list as part of the Department of Commerce’s efforts to prevent US emerging technologies from being used for the PRC’s quantum computing efforts that support military applications, such as counter-stealth and counter-submarine applications and the ability to break encryption or develop unbreakable encryption.”

The theoretical ability of quantum computers to crack the cryptography that protects digital assets has prompted concerns about their security.

Quantum computing expert Andrew Fursman said in May that he strongly believes quantum computers are a threat to Bitcoin (BTC).

“Whether quantum computers come out tomorrow or in five years or in ten years, they are capable of being cryptographically useful. Those devices are going to be capable of doing something that you might not want if you are somebody that’s keeping a secret…

So it’s worth kind of getting into what are the different ways that the blockchains rely on cryptography, and which of those are specifically relevant to the things that quantum computers of the future might do.”