Worried about AI? SEBI chief highlights another threat to digital security

Amid the artificial intelligence revolution, Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (SEBI), on Wednesday said that quantum computing will pose a threat to the current digital security systems. He said that quantum computers will make cryptography redundant with their computing prowess.

Why would quantum computing prove to be a threat?

"Wherever in the financial sector or somewhere else, Cryptography is our standard used key for passwords, we need to prepare for it and work for cryptography-proof passwords, as after the introduction of Quantum computing, Cryptography will break," Pandey said.

Cryptography is a technique of securing information and communications using codes to ensure confidentiality, integrity, and authentication.

Quantum computing uses the principles of quantum mechanics to solve complex problems. They are way more powerful than traditional computers. Quantum computers can be even more powerful than modern supercomputers as they can easily solve complex problems in sectors like medicine, AI, financial modeling, and cryptography.

The remark comes even as artificial intelligence is upending global job markets and the economy.

He further said that every aspect of the Indian securities market has been redefined by technology. He said tech is at the core of every step, and the Indian securities market is being shaped by reforms and an ecosystem that is vibrant, resilient, and inclusive.

He also said technology has made the market faster, simpler, and safer.

He said the Indian markets must balance speed of growth with safety.

"Let us continue to harness technology to build thoughtfully, collaboratively, and with an unwavering focus on trust, a capital market that truly embodies a resilient and inclusive India," he added.