Google has announced that it's now using encryption by default for all Cloud Storage users. Specifically, any data stored in the Google cloud is first encrypted before being written to disk. Users don't need to configure or enable anything, the feature is turned on automatically, though you can take control over it if you want.
"If you require encryption for your data, this functionality frees you from the hassle and risk of managing your own encryption and decryption keys," Google explains.
"We manages the cryptographic keys on your behalf using the same hardened key management systems that Google uses for our own encrypted data, including strict key access controls and auditing," it adds.
However, anyone who wants to manage the encryption themselves can do so, the same options are available as before.
The feature does add a layer of security to the service, but it doesn't really help in many situations for a very simple reason, Google holds the keys.
So, Google can still access any of your stored data with ease, though that was the case before. Your data is only safe in the case of a breach, i.e. if attackers are able to access your data from the Google servers but don't have control of the servers themselves.