A Bank of Italy experiment shows stablecoin remittance costs range from 0.3% to 9%, often matching traditional transfer fees.
A Bank of Italy research study reveals stablecoins like USDC may not reduce remittance costs as widely claimed. Testing 200 transactions across 10 corridors, total fees ranged from 0.3% to nearly 9% of the amount sent, comparable to traditional methods.
The study highlights that blockchain fees account for a small fraction of costs, while exchange fees, FX spreads, and banking charges dominate expenses. Stablecoins excel in speed and programmability but struggle with the ‘last mile’ conversion to local fiat currencies.
While stablecoins can lower costs in specific corridors, the findings challenge the narrative that they universally offer cheaper cross-border payments. Their advantages remain in settlement efficiency rather than cost savings.