Celo Enhances User Experience by Adopting USDT for Transaction Fees

by bollywoodfever · 10/04/2024

Celo Enhances User Experience by Adopting USDT for Transaction Fees

Celo, a blockchain designed for low fees and high usability, has recently endorsed the integration of Tether’s USDT, a stablecoin tied to the dollar, for covering transaction costs. A governance proposal passed on March 28 allows users the convenience of using USDT as a payment method for transaction fees on Celo’s platform, streamlining the process by eliminating the need for multiple tokens in their wallets.

The initiative marks a significant step in broadening the usability of stablecoins within Celo’s ecosystem. The governance proposal highlights that utilizing USDT as a gas token not only simplifies transactions for its holders but also lowers the barrier for new users joining the Celo network. The proposal emphasized the practicality and low risk of incorporating USDT due to its stability and high liquidity across cryptocurrency markets, making it an ideal choice for gas fees.

This development follows Celo’s integration of native USDT on its platform, catering especially to users in emerging markets by enabling them to execute transactions with minimal fees. Tether CEO Paolo Ardoino lauded the move for its potential to increase Tether’s usability and reach globally.

With this update, Celo users now have the flexibility to pay fees using either of the two largest stablecoins, USDC or USDT, paving the way for the creation of tailored stablecoin wallets for various needs, including payment and savings.

As reported by Tether’s transparency page, Celo’s network currently supports 10 million USDT, enhancing the network’s capacity for efficient and cost-effective transactions.