Payment of Algorand fees in USDC

can i pay algorand transaction fee using algorand usdc?

The blockchain only allows you to pay transaction fee in Algos.

However, you can very easily design a smart signature or a smart contract that would allow anyone to pay fees in USDC. One solution is to have a smart signature for an account that has enough Algos and that accepts to pay x Algos as fees, if x * r USDC are sent to the smart signature account.
Thanks to fee pooling, this makes it very easy to do on Algorand.

However, note that just to be able to hold USDC, you need to hold Algos because of the minimum balance requirements.
See Algos and assets - Algorand Developer Portal

PS: I moved the question to a new topic to make it easier for new people to find it.