Google teams up with Coinbase to make a major move into cryptocurrency payments
Technology major Google has teamed up with cryptocurrency exchange platform Coinbase as it looks to allow cryptocurrency payments for its cloud services. According to a press release, the two entities will leverage their strengths towards building the next iteration of the internet, dubbed Web3.
Web3 is the vision for the world wide web, where the ownership of platforms is also decentralized. This is expected to happen through the use of blockchain technology, the one that also powers cryptocurrencies and non-fungible tokens (NFTs). Tech leaders such as Elon Musk and Jack Dorsey have been claiming that the advent of this version of the internet is inevitable, and Google's recent move may be a sign of Big Tech companies warming up to the idea.
What Google's partnership with Coinbase entails
In a blog post by its Chief Product Officer, Surojit Chatterjee, Coinbase has provided us a glimpse of what this partnership means. The two companies that were working in very different environments have been collaborating for the past many months and have recognized strengths on both sides that could be useful to the other organization.
To begin with, starting early next year, Google Cloud will accept payments in certain cryptocurrencies using the Coinbase Commerce platform, which allows merchants anywhere in the world to accept cryptocurrency payments. This service will be rolled out to select users of Google's cloud services that are already involved in the Web3 industry.
Developers in the Web3 space are also in for some good news as Google Cloud will provide access to its blockchain data through BigQuery, powered using Coinbase's Cloud Node service. BigQuery is Google's platform as a service data warehouse that allows users to query big data. The partnership will allow developers to operate Web3-based systems without having to own complex and expensive infrastructure.
Google will also tap into institutional crypto services like secure custody and reporting using Coinbase's platform for institutional clients, called Prime. Coinbase claims it has over 14,500 institutional clients that use its advanced trading platform.
In return, Coinbase will use Google Cloud to build its exchange and data services and process blockchain data at scale. Coinbase customers will also gain machine-learning-driven crypto insights.
What does it mean for cryptocurrencies at large?
The announcement comes with the cryptocurrency industry has been going through some of its toughest periods. Experts have suggested that after riding the high waves in 2021, the crypto industry could see some really dark days ahead. The most popular cryptocurrency, Bitcoin has struggled to get past US$25,000 since June, and faith in NFTs also seems to be dwindling.
The crypto industry would hope to find more such partnerships in the tech industry, which is also looking to build a new future where cryptocurrencies are as much a means of exchange as conventional money.
Google has been warming up to cryptocurrencies and now shows wallet balances in search results when looking up addresses and also ran a countdown clock when Ethereum recently upgraded to a Proof of Work system.
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