Bank of Italy research suggests stablecoins aren’t necessarily cheaper for remittances
A mystery-shopping experiment found that exchange fees, foreign exchange spreads and banking rails mean stablecoin remittances are often no cheaper than traditional transfer means.
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Summary
- The Bank of Italy tested 200 USDC remittances across 10 international payment corridors and found total costs ranged from 0.3% to almost 9% of the amount sent.
- Blockchain transaction fees represented only a tiny fraction of overall costs, with exchange fees, foreign exchange spreads and local banking charges accounting for the bulk of expenses.
- Researchers conclude stablecoins solve the speed of moving value on-chain but have yet to eliminate the costly “last mile” between crypto and local fiat currencies.
- The Bank of Italy notes that stablecoins can reduce costs in specific corridors, while their always-on settlement and programmability remain meaningful advantages over legacy payment rails.
