USDC to Go Native on Celo Blockchain, Eyeing Role as Gas Currency
The Celo Foundation has partnered with Circle to bring USDC, a leading stablecoin, into its network. This integration not only diversifies Celo’s stablecoin offerings but also positions USDC to become an official gas currency on the blockchain.
Celo Embraces USDC for Enhanced Digital Currency Functionality and Gas Payments
The Celo Foundation has announced that Circle will make its US Dollar Coin (USDC) native to the Celo ecosystem. This integration positions USDC to potentially become an official gas currency for Celo, subject to a future governance proposal.
USDC, a leading stablecoin pegged to the US dollar, joins Celo’s diverse stablecoin offerings, including Mento’s Creal and Exof, which are pegged to the Brazilian real and West African franc, respectively.
Celo, a mobile-first and Ethereum Virtual Machine (EVM)-compatible blockchain, is designed to cater to real-world applications. The adoption of USDC is a stride towards enhancing digital currency use in everyday transactions.
With a market cap of around $135 billion, stablecoins have become increasingly crucial as real-world assets (RWAs), offering widespread financial access and inclusivity through uncomplicated, permissionless, and borderless asset transfers.
Celo’s stablecoin applications, spanning remittances, savings, lending, aid distribution, and peer-to-peer (P2P) transactions, will be augmented by USDC’s integration.
In a notable feature of the Celo network, network gas fees (transaction costs) can be paid with stablecoins, enhancing the payment experience. Clabs, the leading contributor to the Celo technology stack, will propose enabling USDC as a gas payment option for the Celo community’s consideration.
Isha Varshney, Head of Strategy and Innovation at the Celo Foundation, expressed enthusiasm about bringing more RWAs onchain through the partnership with Circle, saying that stablecoins have “proven to be among the industry’s prevailing use cases.”
Shamus Noonan, Senior Manager of Business Development at Circle, echoed these sentiments: “This partnership will help broaden access for USDC and leverage Celo’s mobile-first user-base in regions where blockchain adoption is highest.”
Do you think it’s a good idea to be able to pay for gas with stablecoins? Share your thoughts and opinions about this subject in the comments section below.