Google and crypto: Building bridge between Web2 and Web3

Earlier this week, the Bitcoin Tech Carnival conference took place in Hong Kong, where Google's Web3 specialist Kyle Song made a bold statement — Google is working on several cryptocurrency projects.

In particular, the company wants to make Bitcoin more accessible to its users by integrating their accounts with Bitcoin wallets. This would make BTC transactions as seamless as traditional online payments.

This initiative to remove entry barriers into the Bitcoin ecosystem is part of a broader strategy to bridge Web2 payment systems with the decentralized world of Web3.

As part of this effort, Google is also researching advanced encryption technologies, such as Zero-Knowledge Proofs (ZKP), to enhance the reliability and security of blockchain solutions.

How the crypto community reacted

The response to Google's announcement was mixed. Most people welcomed the news with enthusiasm. For instance, Vivek Sen, founder of Bitcoin startup incubator Bitgrow Lab and a well-known Bitcoin maximalist, believes that Google’s interest in the leading digital asset will be beneficial and fuel further BTC price growth.

Many pointed out that Gmail alone has 1.5 billion active users, and if they all gain direct access to Bitcoin, it could trigger a chain reaction that benefits all stakeholders.

However, others raised concerns about centralization risks, data control, and security vulnerabilities. Theoretically, hacking even a single Google account could expose sensitive financial information.

Regardless of criticism, Google is unlikely to abandon its crypto-related plans, especially since these initiatives have been in development for years.

Google's cryptocurrency evolution

Google’s interest in cryptocurrencies and blockchain began as early as 2018, when it launched blockchain analytics tools to study Bitcoin, Ethereum, and other networks.

Additionally, the company integrated blockchain solutions into Google Cloud, allowing developers to store data and create smart contracts. By 2022, Google had established a dedicated blockchain division, and in 2023, Google Cloud started accepting cryptocurrency payments via its partnership with Coinbase.

Today, Google is actively developing Web3 solutions. Some of its latest initiatives include a partnership with Solana Labs to advance Web3 gaming and collaboration with Layer-1 blockchain Sui to enhance Web3 data analysis using AI and ZKP technology.

Why Google is interested in cryptocurrencies

Google’s growing interest in cryptocurrencies is primarily driven by financial incentives. The company understands that the crypto market is expanding rapidly. Since Google first showed interest in digital assets in 2018, the market capitalization of cryptocurrencies has surged from $800 billion to over $3 trillion.

Moreover, if the new U.S. president finalizes plans for a national Bitcoin reserve, Bitcoin could surpass Google’s parent company Alphabet in market capitalization.

Market Capitalization of Leading Assets. Source: CompaniesMarketCap

Even five years ago, MicroStrategy founder Michael Saylor—whose company was the first public firm to create a Bitcoin reserve—warned that Bitcoin would surpass Apple, Google, and Facebook. And it looks like he was right.

This is why Google wants to integrate Bitcoin payments. With its multi-billion user base, the company can profit from transaction fees while significantly strengthening its position in the fintech sector.

A major buildout

Google is rapidly expanding its presence in the crypto industry, aiming to bridge traditional Web2 payment systems with decentralized Web3 technologies. Its efforts to integrate Bitcoin into existing services could simplify user access to digital assets and accelerate mass crypto adoption.

However, not everyone in the crypto community views this initiative positively. Some fear increased centralization and potential threats to data privacy. Nevertheless, it's evident that Google sees the cryptocurrency industry as a promising area for growth and is positioning itself as a major player—a move that could have a profound impact on the future of digital finance.

Source:  tradersunion