Categories: Industry

Google to Rely on Coinbase for Cryptocurrency Payments for Cloud Services

Google said Tuesday that the company is putting its trust in Coinbase for cloud service payments done with cryptocurrencies. In layman’s terms, this means that those who wish to pay for Google’s cloud services with cryptos will have to do it with the help of Coinbase, which supports a total of 10 digital currencies at the moment, including all the most popular ones like Bitcoin, Ethereum, and Dogecoin.

Specifics of the Google-Coinbase deal weren’t revealed to the public, but the companies did announce the deal will go into effect in early 2022. Judging by other deals Coinbase Commerce has with big-tech companies, it’s very likely the company will get a percentage of every transaction it carries out for Google.

As a result of the announcement, the shares of Coinbase skyrocketed, going up by 8.4% in a single day. Still, despite the price increase, Coinbase stocks are still down more than 70% for the year.

The Deal is Meant to Pave Way to Google’s Cloud Business

The deal with Coinbase was announced at Google’s Cloud Next conference, the point of which was to show the world the path Google plans to take in the future. The company is planning to leave its competition behind by giving the users something they can’t get elsewhere. Among those things are cryptocurrency payments.

The Google Cloud Platform has already seen major growth, accounting now for 9% of all the revenue generated by Google’s parent company, Alphabet. That’s a major increase from 6% which was its participation three years ago.

Coinbase to Step Away from Amazon as a Result of Google Deal

In 2022, the main source of revenue for Coinbase comes from retail transactions. In 2023, data-related applications make overtake that spot. The reason is that Coinbase will be in charge of carrying out Google’s cloud-based transactions.

To do that, Coinbase will have to step back from its deal with Amazon, the company with which Coinbase has been working closely over the last couple of years.

Lee Jenkins

Lee is our resident cryptocurrency expert who knows the ins and outs of each coin and the blockchain technology behind them. You’ll find that most of our technical guides are written or overseen by Lee and they are all easily digestible by the new and experienced alike, so there is no better place to learn blockchain 101 than here. Occasionally you may see a news article from him if it’s tech related!

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