Google finally announced its collaboration with Coinbase on Tuesday. This collaboration will allow users to pay for Google cloud services with cryptocurrency from the early start of 2023. Many other companies like Tesla, Block, and Coinbase itself have allowed their users to pay for their services in crypto. But the collaboration of this giant hub with crypto will bring crypto adoption all around the world to a new level.
Google was already in discussion with Coinbase for a few months for this collaboration and from May month there was some strong indication from Google as well about the possibility of them supporting payments on its platform with crypto.
Jim Migdal who is the vice president of business development also talked about this collaboration “we were in talks for months about supporting business transactions, cloud computing, and the Prime service.
In a competitive, quickly expanding sector where Google’s leading competitors do not allow customers to pay with digital currencies, Google has taken a step ahead to do so. The agreement, which was revealed at Google’s Cloud Next conference, might be successful in bringing cutting-edge enterprises to the company. Since it is growing more swiftly than Alphabet as a whole, the cloud business, which helps diversify the parent company Alphabet away from advertising, currently accounts for 9% of revenue, up from less than 6% three years ago.
Amit Zavery who is the Vice president and general manager and head of the platform at Google Cloud said that
“After this collaboration with Coinbase, only a limited number of people will get the chance to use this service at the start but with time we will allow more customers to do the same.”
Zavery discussed that “ We were looking into this and were considering a lot of options and lastly we decided on Coinbase as it has the most capability.
Google is currently investigating the use case of Coinbase Prime which is a service that securely keeps the cryptocurrency of companies and enables them to conduct trades. According to Zavery, they would test the waters and “see how we might engage” in the management of bitcoin assets.
Google Interest in Crypto
It is not the first initiative from google to connect with crypto as other collaborations were also seen. Google Cloud and Sky came to an arrangement last month that allows the cloud division of the tech giant to operate a validator node on Ronin Network, an Ethereum sidechain created by Sky Mavis, the developer of Axie Infinity.
Not only this but when the countdown to Ethereum’s merge started, Google also showed interest in that with a small image that showed up for anyone Googling “Ethereum merge.”
Google’s head of strategy Richard Widmann two weeks ago said that the team is constructing a “huge bridge” for cross-chain interoperability, Web3, and cloud, and labeled his business a “layer zero” for blockchain. Widmann also added that the open-source development and decentralization that are the foundation of the crypto industry are also shared by our company’s present ethos.
How this collaboration will help Coinbase?
Coinbase, which depended heavily on the market-leading Amazon Web Services cloud and earns the majority of its profits from retail transactions, will transfer data-related applications to Google.
After this news, even the shares of Coinbase increase by more than 8% and it seems like a good opportunity for Coinbase as its stock was falling over 70% for the year.
Migdal said that the agreement’s terms were just not made public. But like other Coinbase Commerce agreements, Coinbase will make money from the transactions that pass through it.
Cryptocurrency, metaverse, and blockchain are the trending technology these days. More and more brands and platforms are adopting them as a part of interacting with their users.
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