Quantum computing: a bubble ready to burst or a looming breakthrough?

Giuseppe Bruno ()
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Giuseppe Bruno: Bank of Italy

No 716, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: The advent of quantum computation and quantum information theory and the ever increasing empirical possibilities of translating these theories into real physical systems has raised expectations in the private and public sectors. Quantum computers process information using the laws of quantum mechanics. By exploiting superposition (an object can be in different states at the same time) and entanglement (different objects can be deeply connected without any direct physical interaction) quantum computers are heralded as the next technological breakthrough. Compared to traditional digital computing, quantum computing offers the potential to dramatically reduce both execution time and energy consumption. However, quantum algorithms cannot be fully realized on an actual scale of less than 1,000 qubits. The greatest hurdle in harnessing quantum computing is the instability of their quantum mechanical features. Meanwhile, research has shifted towards making 'noisy' quantum computers useful. In this work we show three noteworthy applications for central banking activities such as gauging financial risk, credit scoring and transaction settlement. These are still proof-of-concepts applications but demonstrate the new software paradigms along with looming potential breakthroughs. We provide a few hints in the trade-off between deploying the innovative technology before it is mainstream and the risk of holding off on adopting it and being surpassed by nimbler competition.

Keywords: quantum computing; quantum information; superposition; entanglement (search for similar items in EconPapers)
JEL-codes: C65 C87 (search for similar items in EconPapers)
Date: 2022-10
New Economics Papers: this item is included in nep-cmp, nep-mfd and nep-pay
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