Celo’s native token is CELO (previously known as Celo Gold). CELO has an ERC20 interact, so users can interface with CELO via the token standard, however they are not required to transfer via the ERC20 interface. Celo allows users to pay transaction fees in assets other than the native CELO asset. This is in contrast to Ethereum, where Ether must be used to pay transaction fees. For stablecoins issued on Celo, for example, transactions can be paid for in those currencies.
Celo supports a suite of stable ERC-20 tokens whose value can be paired with a real-world asset, including currencies, commodities or natural resources. The Celo Dollar is the first stablecoin to be supported on Celo, which is a 1:1 peg for the US Dollar. Achieving this relies on Oracles, who are trusted sources of information fed from exchanges external to the network. The Celo protocol ensures that there is always enough collateral to redeem the amount of Celo in circulation.
Celo’s native token is the key needed to participate in the blockchain’s consensus process.