Quantum Policy/Law: Canada’s Quantum Defence?
- LSOU Publications
- Jan 17
- 3 min read
Written By: Ashaz Syed Hussaini - LSOU Publications
Legal Terms
1. Digital Sovereignty: Nation’s data should be self-governed, no foreign jurisdiction.
2. US. CLOUD Act: US-based tech companies must provide externally-stored data for the US.
3. DIS: Nation defence/research matches domestic industrial capacity/strategic tech sectors.
4. CQCP: Strengthening Canada’s quantum ecosystem through strategic investments.
5. Sovereign Compute: Sensitive nation data must be within & legally subject to the country.
6. AUKUS Pillar II: Development of advanced military capabilities by US, UK, and Australia.
Context
In my current role as a Policy & Standards Co-op for the Cyber Security Division within the Government of Ontario, I have been observing the edge of a huge technological and legal shift. While specific initiatives remain confidential, the public direction is that quantum computing is no longer a distant scientific abstraction but an immediate policy priority. Basically, quantum technology exploits the unique properties of quantum mechanics to process information in different ways from classical computers. This promises breakthroughs in material science and medicine, but it also poses an existential threat to the cryptographic protocols that secure every facet of our digital society, from online banking to state secrets. Because of that dual nature—as something for economic prosperity and for cyber vulnerability—it frames the urgent legal and policy landscape now taking shape in Canada.
Current Events
Policy Ideation
Canada’s response to quantum computing is to make it a sovereignty-centric, industrial policy framework. Minister Evan Solomon rationalizes that idea with digital sovereignty—the idea to build a digital economy governed by Canadian law and protected from foreign legal overreach like the U.S. CLOUD Act which can compel data disclosure from American cloud providers regardless of location. The 2025 federal budget anchors this vision by allocating $334.3 million over five years specifically through a Defence Industrial Strategy (DIS) to strengthen Canada’s quantum ecosystem and accelerate defence adoption. This is a strategic investment to sustain quantum companies and intellectual property domestically; Canada is explicitly recognizing quantum as critical infrastructure for both economy and defence.
Policy Implementation
The strategy moved from planning to action with the December 2025 launch of the Canadian Quantum Champions Program (CQCP). Its first phase commits up to $92 million, with targeted investments in companies like Photonic and Xanadu to develop fault-tolerant quantum computers. Minister David McGuinty framed this as “an investment in national security for decades to come,” meaning applications in cryptography and threat analysis. Right now, the government is pushing a sovereign compute mandate, investing heavily in domestic AI and quantum infrastructure to ensure sensitive data remains under Canadian jurisdiction. This allows for a coherent legal approach since we can foster sovereign technological capability while also erecting jurisdictional barriers to protect data.
Future & Predictions
I predict the DIS will formalize quantum technology as a strategic procurement sector, guaranteeing early demand from the Department of National Defence for quantum sensing, communications, and computing solutions. This will accelerate the commercialization pathway for companies in the CQCP, moving prototypes from lab to deployment. Procurement law and practices will likely face pressure to become more agile to keep pace with technological change—which is a need already identified by policy analysts.
Legislatively, the focus will move toward post-quantum cryptography standards and liability frameworks. As the Benchmarking Quantum Platform by the National Research Council assesses technological progress, the government will probably mandate the migration of critical public and private sector systems to quantum-resistant encryption. New regulatory guidance like what I work on in my co-op—and potentially legislation—will emerge to define a standard of care for data protection against “store-now, decrypt-later” attacks, where adversaries collect encrypted data today to decrypt it once a quantum computer is available. Canada will also likely deepen its allied collaboration on quantum standards, seeking a formal role in forums like AUKUS Pillar II to ensure compatibility and access to allied research while contributing its own expertise.
Significance
The pursuit of digital sovereignty is a modern nation-building project; it will directly impact the privacy and security of your health records, financial data, and personal communications by placing them firmly under Canadian legal protection. For students and professionals in law, policy, and technology, this represents a new field of specialization; understanding the intersection of quantum technology, cybersecurity law, and international jurisdiction will be a highly valuable skillset.
I think the success of this policy will determine whether Canada remains a rules-based player in the digital age or becomes technologically dependent. The investments announced today tell us about building legal and strategic safeguards to protect our digital society and ensure that the immense economic benefits of the quantum era are generated and sustained here at home. The race is not only for technological superiority but for the legal and regulatory frameworks that will govern it.
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