Bitcoin Community Acts on Quantum Computing Risk, Says VanEck
Quantum computing is a recognized risk, but solutions are underway
Quantum computing poses a risk to Bitcoin, but the Bitcoin community is aware of the issue and is working on solutions, according to Matthew Sigel, Head of Digital Assets Research at asset manager VanEck.
Speaking to CNBC, Sigel said that progress may be slow because Bitcoin is decentralized, but the community is actively addressing the threat.
Key points
- Quantum computers could one day be powerful enough to break Bitcoin's cryptography, though such a machine does not exist today.
- Bitcoin developers are testing quantum-resistant signatures on live sidechains.
- Major companies, including Coinbase and Blockstream, are already working on solutions.
- A Bitcoin Security Consortium, including BlackRock, Fidelity Digital Assets, and Block, formed in July to support open-source work on proposals like BIP-360.
What VanEck's research head says
Sigel acknowledged the risk but emphasized the community's response: "It's a risk. But the community has recognized the scope of the issue. There's a lot of talent that's now come together with a framework of how to upgrade the system."
He also noted that upgrades take time because Bitcoin has no central leader, saying: "The upgrades don't happen as fast because there's no CEO who can tell the devs, 'hey, do it now.' There's a governance process — it takes more time, it's a little bit messier, but there are technological paths for quantum resistance, and I think you'll see more of that over the next couple of years."
Industry efforts
In July, Coinbase announced plans to create a post-quantum signing pipeline using secure enclaves and threshold cryptography. The Bitcoin Security Consortium, which also includes Coinbase and Strategy, formed in July to donate funds and dedicate engineers to open-source work, including supporting BIP-360, a proposal to introduce a new transaction output type aimed at reducing long-term quantum computing risks.
What is confirmed
VanEck's head of digital assets research made these statements to CNBC. Quantum computers exist but are error-prone, and no current machine can break Bitcoin's cryptography. Bitcoin remains the largest computer network in existence.
What is still unclear
It is not known when a quantum computer capable of breaking Bitcoin's cryptography might be developed, and the timeline for implementing quantum-resistant upgrades remains uncertain.
Why this matters
The risk of quantum computing is a long-term concern for Bitcoin's security. The community's recognition and initial steps toward quantum resistance are important for the network's future resilience.
What happens next
Sigel expects to see more quantum-resistant solutions over the next couple of years, but no specific timeline or roadmap has been announced.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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