Bank of Italy research suggests stablecoins aren't necessarily cheaper for remittances
A Bank of Italy study reveals that stablecoin-based remittances are not consistently cheaper than traditional money transfer services when accounting for the entire transaction process. While blockchain transfer fees are low, the costs associated with converting fiat to crypto and back to local currency often negate these savings.
Why it matters
This research challenges the common narrative that stablecoins are a universally cheaper alternative for cross-border payments, highlighting hidden costs in the crypto-fiat ecosystem.
Sending USDC across a blockchain may indeed cost only a few cents but a new study from the Bank of Italy suggests that isn't what most people actually pay when they send money home.
In a mystery-shopping exercise spanning 10 international remittance corridors, researchers found that stablecoin-based transfers were not systematically cheaper than conventional money transfer operators once the full journey, from bank account to crypto wallet and back into local currency, was taken into account.
The study, published as Markets, Infrastructures and Payment Systems Paper No. 86 , tracked transfers of 200 USDC from Italy to destinations including Argentina, Brazil, South Africa, the UAE and Japan.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in