Preceding the recent plan by Google to establish a cloud region in South Africa, the tech company, in a conference with Coinbase, announced plans to enable payment with cryptocurrencies for its services.
The partnership would facilitate Coinbase to transfer its cloud applications from Amazon Web Services (AWS) to Google.
Google plans to start up the cryptocurrency payment option with a limited member of users and later enlarge the digital asset accessibility to all customers.
Although the full details of the deal were not disclosed, Jim Migdal, one of Coinbase’s top management staff, communicated that Coinbase would get a percentage of transactions done through the agreement, as it does in other Coinbase commence engagements.
A senior analyst, Owen Lan, highlighted that Google’s partnership with Coinbase could set the pace for other digital asset companies to incorporate their services into the payment options of traditional firms. He added that it is a good indicator of “validation” for crypto-based industries to expand their Total Addressable Market (TAM).
Moreover, in the second quarter of 2022, Google’s cloud service only amounted to about 9% of the total revenue ($6.2 billion), which is less than the revenue of its competitors (Microsoft and Amazon Web Services with a revenue of $19.7 billion and $22.1 billion respectively), so the partnership is expected to increase Google’s yearly revenue.
Users would be allowed to pay on a limited number of cryptocurrencies from 2023; Bitcoin, Ethereum, Dogecoin, USD coin, tether USD, Aptcoin cash, DAI, Shiba Inu, and Bitcoin cash are the authorized cryptocurrencies enlisted for now.
It is actually a low market season for the crypto industry following the plummeting in market assets, with Coinbase recording approximately 64% in the second quarter of this year, so it is auspicious if the Google partnership would boast the crypto market once again.
Although Google’s giant customers do not use most cryptocurrencies presently, the partnership may lure customers into accepting the cryptocurrency payment option.
Logically, crypto users may laud Google for this because of its effect on the market.
Would this enhance the worth of most cryptocurrencies if the acceptability increases?
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