Google Cloud has unveiled plans for a new Layer1 blockchain platform, dubbed GCUL, which it says will make cross-border payments and asset settlements faster and cheaper. But the announcement has stirred up heavy criticism from the crypto community, who argue the platform goes against the very principles blockchain was built on.
A Permissioned Chain at Odds with Crypto Values
According to Google’s blogpost, GCUL is a “private and permissioned system” that leverages Google’s technology to deliver near-instant, low-cost transactions, payment automation, and 24/7 availability. The company says its long-term plan is to make the system more open.
Still, many in the crypto space were quick to criticize the approach. On X (formerly Twitter), traders and analysts argued that by launching a centralized, corporate-run blockchain, Google is missing the essence of what makes blockchains valuable.
“It’s a permissioned chain, run by an American corporation with close ties to the government. I don’t think these people understand what ‘credibly neutral’ means in the context of blockchains,” one trader commented.
Another user was even more blunt:
“Fully centralized? Then they shouldn’t even call it blockchain.”
Industry Voices Weigh In
The skepticism wasn’t limited to anonymous traders. Eli Ben-Sasson, CEO of StarkWare Industries, compared Google’s move to past failed corporate blockchain projects, including Meta’s Diem:
“I think corporations doing L1s is ngmi [not gonna make it]. Including Base. I know this is a contentious opinion. But reminding you I said the same about Diem.”
Jon Charbonneau, co-founder of crypto investment firm DBA, also expressed doubt after first learning about GCUL.
Features and Ambitions
Despite the criticism, Google Cloud is positioning GCUL as a financial infrastructure tool for banks and institutions. In a LinkedIn post, Rich Widmann, Head of Web3 Strategy at Google Cloud, shared more details:
- The blockchain will support Python-based smart contracts.
- It is designed to simplify bank account management and cross-border transactions.
- It will integrate multiple currencies and assets to remove the need for extra infrastructure.
- Fees will be stable and invoiced monthly, unlike traditional crypto networks with volatile gas fees.
Google says the blockchain will eventually be open to its entire user base and “hundreds of institutional partners.” For now, GCUL remains in private testing with no public launch date announced.
The Bigger Picture
While Google highlights the efficiency and stability its platform could bring, the backlash underscores a growing tension between corporate-controlled blockchains and the decentralized ideals at the heart of the crypto industry.
👉 Whether GCUL finds adoption may depend on whether users are willing to trade decentralization for convenience a debate that sits at the center of crypto’s ongoing evolution.
