Beginning in early 2023, Google will enable cloud payments made in cryptocurrency with the assistance of Coinbase (NASDAQ: COIN). Coinbase will be able to use Google’s cloud infrastructure rather than Amazon’s (NASDAQ: AMZN) Web Services cloud, thanks to the strategic collaboration.
For a small number of Web3 clients, Google will accept cryptocurrency payments; after that, it will add support for other clients.
As a result of its partnership with Google to support the tech giant’s use of cryptocurrencies for cloud payments, Coinbase, the largest cryptocurrency exchange in the US, is ecstatic. According to reports, Coinbase will implement this payment mechanism in early 2023 and use Google’s cloud computing infrastructure. The ‘relationship,’ revealed at Google’s Cloud next conference, would help Google draw creative businesses to itself in a fast-moving, competitive sector.
Given that Google’s biggest competitors do not now let users pay using digital currencies, the agreement would be unique.
Is Google Moving to Digital Currencies?
Amit Zavery, VP and General Manager of Google Cloud and head of the platform, said that the platform would first accept bitcoin payments from a small number of Web3 customers that choose to do so through integration with the Coinbase Commerce service.
Google will eventually allow other users to pay with cryptocurrencies. It is important to note that 10 different currencies are now supported by Coinbase Commerce, including the following: Bitcoin, Bitcoin Cash, Ethereum, Dogecoin, and Litecoin. But like previous Coinbase Commerce agreements, Coinbase will often receive a cut of the transactions that pass through it.
Zavery also said that at first, it wasn’t clear if Google would use Coinbase for the payments because PayPal (NASDAQ: PYPL) also facilitates them. But eventually, according to Zavery, Coinbase was the most powerful.
In addition, Google is considering using Coinbase Prime, which securely holds businesses’ cryptocurrency and enables them to conduct trades. According to Zavery, Google will test its capabilities in handling bitcoin holdings. One company that has added crypto assets to its balance sheets is Tesla (NASDAQ: TSLA), along with Block, Coinbase, MicroStrategy, and others. According to Migdal, Coinbase and Google have been discussing enabling business transactions, cloud computing, and Prime services for a while.