Google To Allow Crypto Payments With New Coinbase Deal

 

While Google’s Cloud Next conference may not pull the crowds like Apple’s annual presentation or even Tesla’s AI Day, there have nonetheless been some interesting developments to come out of this year's event.

Given that Google is now one of the ageing stalwarts in the tech industry, it may come as a surprise to some that they plan to begin to accept crypto as payment for some of their cloud computing services.

They’ll be relying on Coinbase to facilitate these transactions, which is expected to be operational in early 2023. Both businesses stand to gain significantly from this as they seek to diversify their business methods and grow their product lines. For Google, it gives them access to quickly expanding businesses in the Web3 industry, which many still think has significant promise despite recent setbacks. From Coinbase's point of view, it will give them an income source that isn't based on trade volume. This is crucial for the viability of the business, which recently let go of over 1,000 staff as a result of the crypto winter's sharp decline in trading volume.

The success of Google's cloud computing division is considered as being crucial. The industry is constantly expanding, incredibly profitable, and enables them to diversify their revenue sources away from advertising.

By enabling businesses in the cryptocurrency industry to pay for their cloud storage using digital currency, Google is able to close a market gap. There are no significant rivals who let businesses do this.

It's significant because a core mindset that seeks to move away from utilising fiat currency, such as the U.S. dollar, underpins the mentality of many crypto and Web3 firms. Many of these companies would want to employ services that accept cryptocurrency payments if given the chance, but as of today, they are just not available on the necessary scale.

The offer won't be made widely at first. Google intends to make the service available to a small group of Web3 customers whose payments will be processed by Coinbase Commerce. Ten different digital currencies, including all the well-known ones like bitcoin, bitcoin cash, Ethereum, litecoin, and yes, even dogecoin, are supported by this platform.

Thus, it enables Google to offer a service for which they do not currently have the capacity, expanding their user base and boosting income. In order to diversify its own income stream away from retail trading fees, Coinbase will charge a portion of the costs that pass through its network.

It functions in a manner that is akin to that of every other payment service, including Apple Pay, Amazon Pay, Visa, and Mastercard. Each of these networks receives a little commission for facilitating the transaction, which is how they all work.

The sole distinction, in this case, is that these transactions use bitcoin instead of fiat money. This might just be the start of Google's entrance into the crypto and Web3 industries. As part of the new relationship, they have also announced that they intend to think about how they may assist other corporations in managing their crypto holdings.

Although this field is still in its infancy, ardent Bitcoin supporters think that as time goes on, we can expect to witness an increase in the number of businesses that have bitcoin on their balance sheets. The adoption of this method has so far only been made by a small group of, albeit sizable, businesses, such as Tesla, Coinbase, Microstrategy, Block, and Riot.

Another illustration of the IT sector's capacity for innovation Companies will find new services to sell and efficiencies to share that will produce new streams of revenue as long as technology continues to develop and advance. Even though cloud computing is still a young technology, it has grown into a $200 billion business.

It's one of the factors that make the IT sector such a desirable investment. But that still doesn't make things simple. The industry's propensity for new competitors to enter and upend the status quo is one of its characteristics, and the sector has recently seen a great deal of instability.

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