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17 Oct 2022
Google Selected Coinbase to Process Cryptocurrency Transactions and Will Use Its Custody Service
In 2023, Google will start letting some customers pay for cloud services with cryptocurrencies through Coinbase, while Coinbase will in turn use Google's cloud services.
While Coinbase shares are down over 70% for the year, they rose 8.4% on Tuesday during a trading session.
The deal announced at Google's Cloud Next conference is expected to draw cutting-edge companies to Google that operate in an emerging field where its top competitors are not currently accepting digital currency as a payment method.
Jim Migdal, Coinbase's vice president of business development, confirmed that Coinbase, which makes most of its revenue from retail transactions, will migrate some data-related applications to Google, who Migdal says was among the best of all their candidates.
After its integration with Coinbase Commerce, which supports a handful of customers from the Web3 world who want to use cryptocurrency to make payments, the Google Cloud Platform now offers its infrastructure services, according to Amit Zavery, vice president and general manager and head of the platform at Google Cloud.
Today, Web3 is one of the major buzzwords that is gradually becoming mainstream; it is part of the distributed and decentralized internet services that Can't be influenced by large internet companies like Facebook or Google.
According to Zavery, Over time, Google will increase the number of its customers who can use cryptocurrency to make purchases. Currently, there are 10 currencies supported by Coinbase Commerce, including Bitcoin, Dogecoin, Ethereum, Bitcoin Cash, and Litecoin. However, Over the past year, Bitcoin, Dogecoin, and Ethereum prices have all fallen by over 60%.
Migdal said: "the exact details of the agreement are not being disclosed, but the particulars of this arrangement are reminiscent of the other agreements that Coinbase has already secured."
It was not guaranteed that Google would use Coinbase for payments. PayPal offers businesses the option to take digital currency as a means of payment. Zavery added, "We did look at other companies for the cryptocurrency side of it."
As stated in May, Google was exploring the possibility of supporting digital currency payments. Earlier this year, Migdal said that Coinbase had been conversing with Google for months, with discussions encompassing commerce transactions, cloud usage, and Prime. "We decided to bring them together," he added.
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