Celo Solidifies Its Stablecoin Partnership: Stablecoins Now Accepted as Payment for Transaction Fees
Celo, a blockchain network focused on low fees and user-friendly features, has recently approved a proposal allowing transaction fees to be paid using stablecoins. This means that network users can now transact using only USDC in their wallets, eliminating the need to hold other tokens and simplifying the process for newcomers.
Celo has been actively working to position itself as a leading platform for stablecoins, having already integrated USDT and USDC as native stablecoins. By allowing USDC to be used for sub-cent transaction fees, Celo aims to attract value-conscious users and streamline their experience.
The implementation of stablecoin gas payments was made possible through a governance proposal passed by the Celo community. This proposal leverages the flexibility of Celo’s protocol, which allows any token to serve as a gas-paying currency after meeting certain conditions.
Clabs, the protocol development organization for Celo, emphasized the significance of using stablecoins as gas tokens. They noted that this feature greatly enhances user experience, particularly for real-world applications like micro-payments. While acknowledging the added complexity at the protocol level, Clabs emphasized that users will benefit from these advancements without being burdened by the underlying technical details.
Jeremy Allaire, CEO of Circle, a major company behind USDC, praised Celo’s move, calling it a paradigm for mass-scale adoption of USDC and stablecoins.
Furthermore, Celo is also working towards making USDT a gas token on its blockchain. A proposal has been drafted to highlight the benefits of using USDT as a gas token, including improved usability and the ability to engage in transactions without needing additional tokens.
What are your thoughts on Celo’s initiative to use stablecoins for transaction fees? Share your opinions in the comments section below.