Life, Finance, and the Quantum Universe - Keynote address by Ravi Menon, Chairman, GFTN

Ravi Menon

Chairman, Global Finance & Technology Network (GFTN)[1]

Keynote Address at Black Swan Summit

University of Western Australia, Perth

24 March 2026

[1] Mr Menon is also Singapore’s Ambassador for Climate Action and Senior Adviser to the National Climate Change Secretariat at the Prime Minister’s Office. He was previously Managing Director of the Monetary Authority of Singapore, from 2011 to 2023.

Good morning, ladies and gentlemen. It is a pleasure to be here — in the land of black swans.

The themes of this summit are machines, money, and humanity.

I want to speak today about something that touches all three — and could reshape how we compute, how we communicate, and how we understand risk. That something is quantum.

Quantum can be hugely consequential for finance, policy, and business.

It is not just a story about computing. It is a story about who will have the capacity to understand risk, secure systems, and allocate capital in a fundamentally different way. And in finance, those capabilities determine not just advantage but stability.

Let me start with:

what is quantum; and

what it means as a way of thinking

WHAT IS QUANTUM?

Classical physics gave us a reassuring picture of the world: predictable, deterministic.

If you know where something is and how fast it is moving, you can calculate where it will be.

Quantum mechanics overturned that picture.

At the smallest scales — electrons, photons, subatomic particles — the universe is not deterministic. It is probabilistic.

First, superposition.

Three principles are key in the world of quantum.

A quantum particle does not occupy a single state. It exists in multiple states simultaneously …. until it is observed. Observation is not passive. It changes the system.

Second, entanglement.

When two particles interact, they become linked. Measuring one affects the other — instantly, regardless of distance.

Third, uncertainty.

The task of finance — and of regulation — is not to eliminate uncertainty. But to manage it, absorb it, and remain resilient in the face of it. Today, classical methods rely on simplifications to price derivatives under complex, path-dependent conditions. Quantum methods may allow more accurate pricing of instruments that are currently approximated. Certain properties, like position and momentum, cannot both be known precisely at the same time. Not because of measurement error. But because that is how reality works.

These ideas seem strange. But could it be they describe the world as it is, not as we might wish it to be?

QUANTUM AS A WAY OF THINKING

This brings me to quantum as a way of thinking.

Quantum mechanics is not just a theory of physics. It is a way of thinking about complex systems – and finance is one such system.

Think about superposition. A financial market is not in a single, knowable state.

Asset and liability values are a distribution of possible outcomes — shaped by expectations, incentives, and information. When a central bank speaks, it does not merely describe reality. It changes it.

Think about entanglement. Our financial system is deeply interconnected.

A shock in one part of the world propagates quickly, and often non-linearly. A conflict thousands of miles away. Oil prices surge. Shipping routes reconfigure. Inflation reawakens. Markets reprice risk. That is entanglement: not as theory, but as lived reality.

Think about uncertainty. Our financial system is inherently uncertain.

I am not suggesting that quantum mechanics explains financial markets. But it encourages habits of thought that are valuable.

holding multiple possibilities;

understanding interconnections;

making decisions amidst uncertainty.

Let me now turn to three quantum technologies which matter most for finance:

quantum computing

quantum cryptography

quantum sensing

QUANTUM COMPUTING

First, quantum computing.

Classical computers use bits — 0 or 1.

Quantum computers use qubits — which can be 0 and 1 simultaneously. This allows them to explore many possible solutions at once.

Why is this significant in finance? Let us look at three potential applications.

One, portfolio optimisation.

Imagine a global bank optimising a portfolio across thousands of assets under multiple constraints — liquidity, capital rules, and stress scenarios. A classical system approximates. But a quantum system explores the full solution space simultaneously.

The difference is not incremental. It is transformational.

Two, risk simulation.

Today, institutions run Monte Carlo simulations with limits on scenarios and speed. Quantum computing could expand this dramatically — enabling far richer scenario analysis under extreme but plausible conditions.

Three, derivatives pricing.

There are some systemic implications for finance arising from quantum computing.

Differential access to quantum computing could create new asymmetries in trading, risk pricing, and information advantage

If a small number of institutions can model risk more accurately — and faster — than others, markets may become less level, not more. This in turn raises profound policy questions. Do we risk concentration of informational advantage? How do we ensure fair access? How do we prevent instability from asymmetric capabilities?

QUANTUM CRYPTOGRAPHY

Next, quantum cryptography.

The security of finance rests on cryptography. A powerful quantum computer could break widely used encryption.

This is not just a technical issue. It is a systemic one. There is already a strategy known as “harvest now, decrypt later.” Adversaries intercept data today. They store it and wait. And when quantum capability becomes mature, they decrypt it retroactively.

Several jurisdictions now treat post-quantum cryptography as a national priority.

The United States, through NIST, has already released post-quantum standards.

The European Union has begun coordinated migration planning across critical infrastructure.

The question is no longer whether to prepare, but how.

How quickly can institutions migrate, without disrupting the systems they are trying to protect? Can quantum technology itself be used as a defence against intrusion? Quantum Key Distribution enables communication that cannot be intercepted without detection. In short, the intrusion announces itself: security enhanced not by mathematics but by physics.

QUANTUM SENSING

Third, quantum sensing.

Quantum sensors measure time, gravity, and fields with extraordinary precision.

In finance, this may sound distant. But consider what happens as markets become more digital and more tokenized. Imagine verifying, in real time, the physical existence and condition of assets underlying financial contracts — commodities, infrastructure, supply chains. In a world of tokenised finance, the integrity of the physical layer becomes critical. Quantum sensing may become that bridge.

Trust shifts from institutions to data — and from data to the physical reality it represents.

ENGAGING QUANTUM: Q-FINEX

Many financial institutions want to engage with quantum. But the cost and complexity are prohibitive. How do we get started?

Later this morning at 11 am, the Global Finance & Technology Network (GFTN) will launch Q-FINEX — the Quantum Finance Industry Experimentation Programme.

Q-FINEX will provide a structured, de-risked environment for financial institutions to experiment with quantum applications. It is a partnership between GFTN and the University of Western Australia’s Quantum Information, Simulation and Algorithms lab.

Q-FINEX connects to world-class infrastructure — including the Pawsey Supercomputing Centre and leading quantum providers.

Q-FINEX lowers the entry barrier for financial firms that want to engage quantum. Stay tuned for the details later.

CONCLUSION

Let me close with three observations.

One, the timelines for quantum remain uncertain.

Breakthroughs may take longer than expected, or quantum could arrive suddenly.

Quantum machines exist, but they are imperfect.

Quantum computing is being explored in hybrid systems. But these systems are not fault-tolerant.

As is often the case in finance, the cost of being late could be greater than the cost of being early.

Which is why post-quantum cryptography is now a regulatory preparedness issue.

Two, we must invest early in understanding quantum — not just the technology, but its governance.

How do we supervise quantum-enabled finance?

How do we address new asymmetries arising from differential access to quantum?

How do we transition infrastructure safely?

Three, getting quantum right requires active collaboration.

No single institution — no single country — can build the infrastructure for quantum in finance. It requires partnerships across finance, technology, and policy.

And the emerging questions of governance require coordination across regulators, central banks, and industry.

Our task — as practitioners and policymakers — is not to eliminate uncertainty.

But to understand it more deeply.

To manage it more wisely.

And to prepare for what is coming — before it arrives.

I hope this summit contributes to that preparation.