The United States is reportedly engaged in "early talks" with quantum computing companies to offer financial support to the sector, citing national security interests as a primary driver.
Department of Commerce officials are considering using funds allocated for the CHIPS Act to invest in quantum computer technology. This initiative aims to bolster the US's competitive standing against China in this rapidly advancing field, according to a report by Bloomberg on Thursday.
Sources familiar with the discussions indicated that the government expects some form of return for its financial contributions, which could potentially include equity stakes in the companies receiving the funding.
This approach mirrors a similar arrangement made in August 2025, when the US government acquired a 10% stake in chip manufacturer Intel. However, this strategy has drawn criticism from some analysts.
Economic Perspectives on Government Investment
Economist and investor Peter Schiff expressed concerns on X, suggesting that President Donald Trump's protectionist trade policies and investments in the private sector are steering the US towards a "centrally planned economy." Schiff advocated for the free market to be the determinant of fund allocation.
The Quantum Threat to Cryptography
Quantum computers possess the capability to break modern encryption standards, which are fundamental to cryptocurrencies and essential for data protection across banking, medical, and military applications. This potential vulnerability has prompted the cryptocurrency industry to actively pursue post-quantum cryptographic solutions.
Quantum Supremacy and its Implications
The timeline for when quantum computers will achieve "quantum supremacy"—the point at which they can break current encryption standards—remains a subject of debate among experts. Some projections suggest this could occur within the next five to ten years, posing a significant threat to existing cryptographic systems.
There is also a concern that the threat to cryptocurrency may have already begun through "harvest now, decrypt later" techniques. This method involves adversaries collecting encrypted data now, with the intention of decrypting it once sufficiently powerful quantum computers become available.
This process would involve compiling public keys and storing the associated data until a capable quantum computer is developed, at which point the private key could be derived from the public key.
David Carvalho, CEO of Naoris Protocol, a company specializing in post-quantum and decentralized cybersecurity infrastructure, commented on the potential impact. He suggested that the average person might not immediately recognize the presence of an operational quantum computer, stating that "When you think you’re seeing a quantum computer out there, it’s already been in control for months."