Tech giant Google is teaming up with Citigroup and the Stanford Federal Credit Union to launch checking accounts sometime next year. Just like Apple, Facebook and Uber Google is going to team up with a bank to provide these sorts of consumer front ends to traditional banking services. It looks as the big companies run out of markets, they are aiming towards consumer finance as its one of the last huge untapped markets for them to go into and they’re partnering with banks as they don’t want to bear up the regulatory burden that comes with the line of work. But Is Google Bank going to give a tough time to Bitcoin?
The Tech giant is clearly seeing Facebook as a threat with its ambition of taking over the crypto space. As Facebook faces resistance getting regulatory approvals and backers. Google is trying to take the traditional approach like Apple and Amazon. The biggest threat to bitcoin is the quantum prowess delivered by Google, but this move might present a completely different picture in the crypto space. Quantum technology might look like a great method to speed up mining business but, Is Google going down that route?
As Google executive Caeser Sengupta told Wall Street Journal:
“Our approach is going to be to partner deeply with banks and the financial system,”
“It may be the slightly longer path, but it’s more sustainable. If we can help more people do more stuff in a digital way online, it’s good for the internet and good for us.”
Mainstream media is calling Google Bank the Bitcoin Killer. Forbes already claims Google’s superior digital money service could be a greater threat to bitcoin than its quantum supremacy but it seems clear that Google is not going in the same route as bitcoin, Tech companies’ new product line has already been ridiculed as mistrust in tech giants is at an all-time high as people are already not willing to give their personal data to these companies. It’s highly unlikely that Google would try to compete heads on with other Cryptocurrencies or Blockchain. Bitcoins is operating at an entirely different part of finance than traditional banking, and its highly unlikely that bitcoin investors will move their assets and funds into new Google Bank account.
Google Bank may not come out as a Bitcoin Killer rather Google joining the banking industry will strengthen the crypto narrative and the need for a globally accepted, decentralized currency. But Google’s ambitions with this new platform may not be clear right now and only the future will tell whether Google will follow the footsteps of its counterpart Google or just act as a traditional banking system.