[WhiteOwlLion]

You have to decide if you want inflation or a fixed supply? Even with a fixed supply, transaction fees eat away at the available supply (aside from hodlers) which means the value could potentially rise from scarcity. That's not good for commerce if you need a currency that needs a stable value.

If there is a government backed currency, I think there should be no transaction fees.

A USDC could also mean tax jurisdictions could be paid immediately when there is a sale. If sales tax is 10%, the state might get 7%, county gets 2%, and city gets 1%... the distribution is immediate so you have daily cash flow.

[kekeblom]

The transaction fees would end up going to someone (e.g. miners but some implementations might have some other system in place) and eventually they would end up spending them. At least that is how current cryptocurrencies work.