China has announced plans to increase support for AI development and boost venture capital investment as part of its broader strategy to drive technological breakthroughs and self-reliance.
The initiative was outlined in a government report presented at the annual National People’s Congress, highlighting AI, biomanufacturing, quantum technology, and 6G as key areas for future growth.
Authorities plan to encourage the application of large-scale AI models and the advancement of next-generation intelligent terminals and smart manufacturing systems.
The report also emphasised the importance of creating an environment that supports innovation, allowing for exploration and tolerating failure. Young scientists and engineers will be given significant roles in national laboratories to accelerate progress in emerging industries.
China intends to improve its data infrastructure and facilitate cross-border data flows to strengthen its technological capabilities.
The inclusion of AI in the government’s work report for the first time comes amid growing interest in Chinese AI startups such as DeepSeek, signalling Beijing’s intent to remain at the forefront of AI development.
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PsiQuantum has developed a method to manufacture quantum computing chips at scale, solving a key challenge in the industry.
The company confirmed its chipset, Omega, is now ready for mass production through a partnership with GlobalFoundries, which is producing millions of the chips at its factory in Albany, New York.
The startup employs a photonics-based approach, leveraging widely used semiconductor manufacturing techniques. However, this method enables quantum calculations using particles of light while requiring less complex cooling mechanisms than other quantum technologies.
Manufacturing yields have matched those of standard semiconductors, according to company executives.
Findings on mass production were published in the journal Nature, highlighting the readiness of PsiQuantum’s technology. The company expects to complete a facility capable of performing commercial quantum applications by around 2027, aligning with recent industry predictions that quantum computing is now only years away from practical use.
PsiQuantum was valued at $3.15 billion in 2023, positioning it as a leading player in the race for commercially viable quantum computers. Other companies, including Microsoft and Google, have also made significant progress, with Google forecasting commercial applications within five years.
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Quantum Machines (QM), a leader in quantum computing technology, has raised $170 million in a mid-stage funding round, bringing its total funding to $280 million. The investment is seen as a significant step in accelerating QM’s role in the rapidly evolving quantum computing industry. With quantum technology on the verge of becoming a major disruptive force, this funding will help QM expand its hardware and software offerings to meet the demands of quantum system developers globally.
Quantum computing holds enormous promise for breakthroughs in fields such as medicine and chemistry, offering the ability to solve problems far beyond the capabilities of classical computers. While the technology is still developing, key milestones are being reached, including IBM and Google’s advancements in achieving over 1,000 qubits. These developments signal that practical quantum computers could soon become a reality.
QM’s growth is supported by strong backing from major investors, including PSG Equity and Intel Capital, reflecting the increasing confidence in the potential of quantum computing. As the technology matures, companies like Microsoft and Nvidia are also contributing to the ecosystem, highlighting that the quantum race is heating up. Despite regional challenges, Israeli tech startups, including QM, are continuing to attract investment, contributing to the country’s growing tech sector.
With this new funding, QM is well-positioned to drive forward its mission to innovate and lead in the quantum computing space, which many consider one of the most important technological developments of the current generation.
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The rise of quantum computing poses a serious threat to modern encryption systems, with experts warning that critical digital infrastructure could become vulnerable once quantum devices reach sufficient power.
Unlike classical computers that process binary bits, quantum computers use qubits, allowing them to perform vast numbers of calculations simultaneously.
This capability could make breaking widely used encryption methods, like RSA, possible in minutes—something that would take today’s computers thousands of years.
Although quantum systems powerful enough to crack encryption may still be years away, there is growing concern that hackers could already be collecting encrypted data to decode it once the technology catches up.
Sensitive information—such as national security data, intellectual property, and personal records—could be at risk. In response, the US National Institute of Standards and Technology has introduced new post-quantum encryption standards and is encouraging organisations to transition swiftly, though the scale of the upgrade needed across global infrastructure remains immense.
Updating web browsers and modern devices may be straightforward, but older systems, critical infrastructure, and the growing number of Internet of Things (IoT) devices pose significant challenges.
Satellites, for instance, vary in how easily they can be upgraded, with remote sensing satellites often requiring full replacements. Cybersecurity experts stress the need for ‘crypto agility’ to make the transition manageable, aiming to avoid a chaotic scramble once quantum threats materialise.
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According to Bitcoin exchange River, Microsoft’s latest quantum computing chip, Majorana 1, could accelerate the timeline for making Bitcoin resistant to quantum threats. While the risk of a quantum attack remains distant, experts warn that preparations must begin now. The chip, launched on 19 February, is part of a growing race in quantum technology, with Google’s Willow chip also making headlines in December.
River suggests that if quantum computers reach one million qubits by 2027-2029, they could crack Bitcoin addresses in long-range attacks. Though some argue such a scenario is still decades away, River insists early action is key. The potential threat has reignited discussions on BIP-360, a proposed upgrade to strengthen Bitcoin’s defences against future quantum advancements.
Critics remain sceptical, arguing that quantum computing is still in its infancy, with major technical challenges to overcome. Some believe traditional banking systems, which hold far greater assets than Bitcoin, would be targeted first. Others see quantum developments as an opportunity, suggesting they could help fortify Bitcoin’s security rather than weaken it.
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Microsoft has announced a groundbreaking quantum computing chip, Majorana 1, which it claims could make useful quantum computers a reality within years. The company believes this innovation puts it ahead in the race to unlock quantum computing’s vast potential.
Unlike classical computers, quantum systems could perform calculations in fields like medicine and chemistry that would otherwise take millions of years, although they also pose risks to current encryption standards.
The Majorana 1 chip relies on a particle called the Majorana fermion, theorised in the 1930s. Microsoft says its unique design makes the chip less error-prone than its competitors.
Despite having fewer qubits than chips from Google and IBM, the company argues that the lower error rates mean fewer qubits are needed for practical applications.
Microsoft’s development of Majorana 1 combines advanced materials like indium arsenide and aluminium, using a superconducting nanowire to observe and control the Majorana particles.
Fabricated at its labs in Washington and Denmark, the chip was described as a ‘high risk, high reward’ endeavour by Jason Zander, a senior Microsoft executive.
Quantum physicist Philip Kim from Harvard University praised the innovation, calling it an exciting step forward. While scaling up the technology remains a challenge, experts suggest Microsoft’s approach could lead to significant advancements in quantum computing.
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Google plans to introduce real-world quantum computing applications within five years, according to its head of quantum research, Hartmut Neven. The company’s prediction challenges Nvidia CEO Jensen Huang‘s estimate that practical quantum computing remains at least 15 to 30 years away. Google has been developing quantum technology since 2012 and recently announced a breakthrough that could accelerate the field.
Potential applications for quantum computing include advancements in materials science, drug discovery, and energy solutions. Google has already demonstrated quantum processors capable of solving complex problems far beyond the reach of traditional computers. A recent study published in Nature highlights new progress in quantum simulation, bringing the company closer to commercial viability.
The timeline for practical quantum computing remains uncertain, with predictions varying widely among experts. Nvidia’s scepticism caused a sharp drop in quantum-related stocks, but Google remains optimistic about achieving its goal. Governments and businesses continue to monitor quantum developments closely due to their potential impact on cybersecurity, finance, and healthcare.
The digital revolution has brought in remarkable innovations, and quantum computing is emerging as one of its brightest stars. As this technology begins to showcase its immense potential, questions are being raised about its impact on blockchain and cryptocurrency. With its ability to tackle problems thought to be unsolvable, quantum computing is redefining the limits of computational power.
At the same time, its rapid advancements leave many wondering whether it will bolster the crypto ecosystem or undermine its security and decentralised nature. Can this computing breakthrough empower crypto, or does it pose a threat to its very foundations? Let’s dive deeper.
What is quantum computing?
Quantum computing represents a groundbreaking leap in technology. Unlike classical computers that process data in binary (0s and 1s), quantum computers use qubits, capable of existing in multiple states simultaneously due to quantum phenomena such as superposition and entanglement.
For example, Google’s new chip, Willow, is claimed to solve a problem in just five minutes—a task that would take the world’s fastest supercomputers approximately ten septillion years—highlighting the extraordinary power of quantum computing and fuelling further debate about its implications.
These advancements enable quantum machines to handle problems with countless variables, benefiting fields such as electric vehicles, climate research, and logistics optimisation. While quantum computing promises faster, more efficient processing, its intersection with blockchain technology adds a layer of complexity so the story takes an interesting twist.
How does quantum computing relate to blockchain?
Blockchain technology relies on cryptographic protocols to secure transactions and ensure decentralisation. Cryptocurrencies like Bitcoin and Ethereum use elliptic curve cryptography (ECC)to safeguard wallets and transactions through mathematical puzzles that classical computers cannot solve quickly.
Quantum computers pose a significant challenge to these cryptographic foundations. Their advanced processing power could potentially expose private keys or alter transaction records, threatening the trustless environment that blockchain depends upon.
Opportunities: Can crypto benefit from quantum computing?
While the risks are concerning, quantum computing offers several opportunities to revolutionise blockchain:
Enhanced security: Developers can leverage quantum principles to create stronger, quantum-secure algorithms.
Smarter decentralisation: Quantum-powered computations could enhance the functionality of smart contracts and decentralised apps (DApps).
By embracing quantum advancements, the blockchain industry could evolve to become more robust and scalable— hopefully great news for the crypto community, which is optimistic about the potential for progress.
How does quantum computing threaten cryptocurrency?
Despite its potential benefits, quantum computing poses significant risks to the cryptocurrency ecosystem, depending on how it is used and who controls it:
Breaking public key cryptography Quantum computers equipped with Shor’s algorithm can decrypt ECC and RSA encryption. Tasks that would take classical computers millennia could be accomplished by a quantum computer in mere hours. This capability threatens to expose private keys, allowing hackers to access wallets and steal funds.
Mining oligopoly The mining process, vital for cryptocurrency creation and transaction validation, depends on computational difficulty. Quantum computers could dominate mining activities, disrupting the decentralisation and fairness fundamental to blockchain systems.
Dormant wallet risks Wallets with exposed public keys, particularly older ones, are at heightened risk. A quantum attack could compromise these funds before users can adopt protective measures.
With projections suggesting that quantum computers capable of breaking current encryption standards could emerge within 10–20 years—or perhaps even sooner—the urgency to address these threats is intensifying.
Solutions: Quantum-resistant tokens and cryptography
Where there is a challenge, there is a solution. The crypto industry is proactively addressing quantum threats with quantum-resistant tokens and post-quantum cryptography. Lattice-based cryptography, for example, creates puzzles too complex for quantum computers, with projects like CRYSTALS-Kyber leading the charge. Hash-based methods, such as QRL’s XMSS, ensure data integrity, while code-based cryptography, like the McEliece system, uses noisy signals to protect messages. Multivariate polynomial cryptography also adds robust defences through complex equations.
As we can see, promising solutions are already actively working to uphold blockchain principles. These innovations are crucial not only for securing crypto assets but also for maintaining the integrity of blockchain networks. Quantum-resistant measures ensure that transaction records remain immutable, safeguarding the trust and transparency that decentralised systems are built upon.
The quantum future for crypto
Quantum computing holds tremendous promise for humanity, but it also brings challenges, particularly for blockchain and cryptocurrency. As its capabilities grow, the risks to existing cryptographic protocols become more apparent. However, the crypto community has shown remarkable resilience, with quantum-resistant technologies already being developed to secure the ecosystem. This cycle of threats and solutions is a perpetual motion—each technological advancement introduces new vulnerabilities, met with equally innovative defences. It is the inevitable price to pay for embracing the modern decentralised finance era and the transformative potential it brings.
The future of crypto does not have to be at odds with quantum advancements. With proactive innovation, collaboration, and the implementation of quantum-safe solutions, blockchain can survive and thrive in the quantum era. So, is quantum computing a threat to cryptocurrency? The answer lies in our ability to adapt. After all, with great power comes great responsibility—and opportunity.
Quantum computing stocks experienced a sharp decline on Wednesday following comments from Nvidia CEO Jensen Huang, who predicted practical quantum computers are still two decades away. His timeline dampened expectations in a sector already facing significant investment without broad applications.
Rigetti Computing, D-Wave Quantum, Quantum Computing, and IonQ saw their shares plummet over 40%, with more than $8 billion in combined market value lost. Investment chief Ivana Delevska of Spear Invest, which holds Rigetti and IonQ shares, supported Huang’s prediction, noting it took Nvidia a similar period to develop accelerated computing.
The sector had previously surged due to a technological breakthrough at Google, with stocks rising at least threefold last year. Despite the optimism, revenue generation remains minimal, with IonQ valued at over $10 billion but expected to generate just $41.6 million in 2024 revenue.
Craig-Hallum analyst Richard Shannon suggested government contracts could drive future revenue, cautioning investors not to focus solely on current low earnings. He also warned quantum computing could eventually disrupt parts of classical computing, where Nvidia plays a leading role.
The Ministry of Defence announced that the UK is developing its first quantum clock, a cutting-edge device designed to enhance military intelligence and reconnaissance. Created by the Defence Science and Technology Laboratory, the clock boasts unparalleled precision, losing less than one second over billions of years.
By leveraging quantum mechanics to measure atomic energy fluctuations, the technology reduces reliance on vulnerable GPS systems, offering greater resilience against disruption by adversaries. That marks the UK’s debut in building such a device, with deployment anticipated within five years.
While not the world’s first quantum clock (similar technology was pioneered in the US 15 years ago), the UK effort highlights a growing global race in quantum advancements. Quantum clocks hold potential beyond military applications, impacting satellite navigation, telecommunications, and scientific research.
Countries like the United States and China are heavily investing in quantum technology, seeing its transformative potential. Future UK research aims to miniaturise the quantum clock for broader applications, including integration into military vehicles and aircraft, underscoring its strategic importance in defence and industry.
