What Does Google and Coinbase Partnership Mean for Cryptocurrency Payments

What Does Google and Coinbase Partnership Mean for Cryptocurrency Payments

What is Google Trying to Do?

Google wants to allow payments for its cloud service through cryptocurrency. Knowing Google as a technology firm that was born during Web 1.0 and then gained maturity in Web 2.0 era, this move is to ensure Google stays relevant in the Web3 era. 

Web3 (Read: What is Web3?), is designed to be decentralized. This moves the power from tech firms to consumers, especially when it comes to privacy and personal data monetization. Blockchain technology, which in essence is the foundation of decentralization, powers many of the Web3 services, like cryptocurrency, non-fungible tokens (NFTs), Decentralized Finance DeFi...etc. 

Interestingly though, Google has opted for a partnership vs a build strategy - teaming up with cryptocurrency exchange platform Coinbase as it looks to allow cryptocurrency payments for its cloud services.

What Googles Partnership with Coinbase is about?

To glean insights of this partnership, blog post from Surojit Chatterjee, Coinbase's Chief Product Officer comes very handy. Here's a high-level overview:

• Apparently, the two companies have been collaborating for quite a few moths to identify strengths on both sides
• Google Cloud will provide developers in the Web3 space access to its blockchain data through BigQuery, powered using Coinbase's Cloud Node service, negating the need for developers to own complex and expensive infrastructure.
• Google will tap into institutional crypto services like secure custody and reporting using Coinbase's platform for institutional clients, called Prime
• Google Cloud will accept payments in certain cryptocurrencies using the Coinbase Commerce platform, which allows merchants anywhere in the world to accept cryptocurrency payments.
• Service will be rolled out to select users of Google's cloud services that are already involved in the Web3 industry.
• 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 this Mean?

Cryptocurrencies have been maturing and going through growing pains. Dubbed the crypto winter, major cryptocurrencies have lost significant value, many investors have been hacked, Ether has finally executed the merge and is reduced almost 99% overhead cost. 

Partnerships such as this, are a leading indicator that evolutions to Web3 is now moving to a reality. Regulators are also starting to define measures that will safe guard both consumers and businesses. Whilst, some countries have moved completely to cryptocurrencies, the rest of world is starting to move in this direction. 

With unknowns also come business opportunities (Read: Web3 Business Opportunities), especially those firms who are in the business of providing payment settlement services. Just like PayPal brought a single plane of glass to payments, payment settlement companies have an opportunity to provide similar service digital currencies.