The collaboration between Celo and Circle aims to benefit both parties.

Circle's USD Coin (USDC) will be integrated into the Celo blockchain, enhancing its ability to handle real-world assets and facilitating exchange with traditional fiat currencies.

This move aligns with Celo's transition from an EVM-compatible layer-1 protocol to adopting an Ethereum layer-2 framework.

Additionally, there is a proposal to use USDC as the operational gas currency on the Celo platform, subject to a community vote.

Celo already supports various stablecoins, including cUSD, cEuro, cREAL, and eXOF, demonstrating its commitment to expanding its blockchain ecosystem and promoting the broader adoption of digital currencies.