All set for a quantum financial system?
The quantum financial system (QFS) is a new technological development that promises to revolutionise how we interact with money, streamlining and democratising wealth generation while ensuring privacy and data integrity.
In technical terms, quantum computing is fundamentally different from traditional computing. While current computing uses bits, quantum computing uses qubits. Bits can only work with binary results, i.e. from two possibilities, 1 or 0, whereas the electrons in the qubit can calculate all possible combinations at the same time, known as quantum superposition.
This different approach allows very complex calculations to be performed in minutes or hours, which would require months or years with today’s computers. Quantum computing, therefore, has the potential to solve problems of exponentially growing complexity that classical computers would be unable to tackle.
At a time when immense amounts of data are generated and have to be processed at high speed, quantum computing makes it possible to create new algorithms capable of analysing a multitude of data or encrypting and decrypting highly complex information faster. It is accordingly emerging as one of the key technologies in the profound transformation that the economy and society are undergoing through Industry 4.0.
A quantum financial system?
A quantum financial system (QFS) is a hypothetical financial system that would use quantum computing technology and quantum cryptography through a blockchain to manage financial transactions and data. Quantum banking could bring several advantages over traditional financial systems, such as increased security, faster transaction processing times and more sophisticated risk management capabilities. A new technological concept that would revolutionise the way we interact with money, offering a myriad of new financial possibilities for businesses and individuals.
One of the main advantages of QFS is that the data is immutable and cannot be manipulated by any malicious actor. This is because a QFS would issue a digital number for each currency (dollar, euro, etc.) in each bank account and the physical (GPS) position of each of these currencies will be monitored in real-time. That is, you will know exactly where it is, when it has been transferred, the account number and the details of anyone who has had access to the account.
Furthermore, a new global network for the transfer of funds that would protect all parties involved within the banking system would have the potential to replace the current US-controlled SWIFT system, democratising a global transaction system that is currently totally politicised.
Cryptocurrencies and quantum currencies
At first glance, it might seem that a quantum currency system would be very similar to a cryptocurrency system: decentralised, encrypted, blockchain, faster, and more efficient… In practice, however, they are two concepts with fundamental differences. It is not a cryptocurrency, but a digital currency backed by physical assets.
The two differ in the fact that quantum variations exist in physical form, which makes them more analogous to fiat currency than to their cryptographic cousins. Also, only gold-backed currencies with a digital gold certificate would be able to participate in the transactions of a QFS. This would assign a serial number to the gold certificate as a reference to a gold piece held in reserve to support the currency, assets that would determine the amount of currency accessible in each country.
Ultimately, a quantum financial system could be part of the solution to the problems currently facing the traditional financial system, addressing the lack of transparency, data insecurity, corruption and the intrinsic volatility of the lack of trust in the current monetary system.
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