Crypto Buy Signal - Coinbase and Google in Cloud Partnership for Crypto Payments

The cryptocurrency market might be down after losing two-thirds of its value over the past year, but adoption is still significantly high. Tech giant Google recently announced a partnership with the Coinbase exchange to accept cryptocurrency payments for cloud services.

Coinbase partners with Google

On Tuesday, Google announced a partnership with the Coinbase cryptocurrency exchange. Through the partnership, the tech giant plans to allow some customers to make cloud service payments using cryptocurrencies. The payment method will be unveiled in early 2023.

The shares of the Coinbase exchange responded to the news of the partnership and jumped by over 8% on Tuesday. However, COIN has been one of the most affected shares this year after dropping by more than 70%.

The agreement between Google and Coinbase was revealed at the Google Cloud Next conference. This could be a key partnership that signals Google’s entry into the web 3.0 & crypto space. Additionally, it might enhance Google’s competitive position, as many of its rivals have not yet allowed digital currency payments.

Google launched its cloud business to help its parent company, Alphabet, diversify from solely depending upon advertisements. The cloud services offered by Google account for 9% of the company’s revenues, an increase from below 3% three years ago. Google’s cloud business has also expanded rapidly.

In an interview with CNBC, the vice president, and general manager at Google Cloud, Amit Zavery, said that Google’s Cloud Platform infrastructure service will accept digital currency payments from several customers offering Web3 services that want to pay in crypto. These payments will be allowed through a partnership with the Coinbase Commerce service.

Coinbase’s vice president of business development, Jim Migdal, said the company would migrate its data-related applications from Amazon Web Services cloud to Google Cloud.

Google will allow clients to make payments in the ten cryptocurrencies supported in Coinbase Commerce. These cryptocurrencies include Bitcoin, Ethereum, Dogecoin, Bitcoin Cash, and Litecoin. Zavery said that Google Cloud partnered with Coinbase because it had a great capability.

Google explores Coinbase Prime

It appears that Google is not just interested in Coinbase Commerce services. The tech giant is also exploring Coinbase Prime. While speaking to CNBC, Zavery said that Google would experiment and look into how it can “participate” in managing cryptocurrencies.

Google’s foray into cryptocurrencies comes amid an intense bear market. Cryptocurrency prices have dropped by nearly two-thirds this year. The institutional investments in the crypto space have increased the correlation between the crypto and stock markets, and the two assets have been performing in tandem for most of the year.

Nevertheless, the failing prices are not slowing Google’s entry into the space. In May, Google announced it was exploring the possibility of adding support for cryptocurrency payments. Google will be joining the likes of top tech companies such as PayPal that have also switched to accepting cryptocurrency payments.

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