Bank of Italy Finds Stablecoins Offer No Consistent Remittance Cost Edge

Researchers found that fiat conversion costs and payment infrastructure, rather than blockchain transaction fees, accounted for most of the differences in stablecoin remittance costs and settlement speeds.

A Bank of Italy study found that stablecoin-based remittances did not consistently provide a cost or speed advantage over traditional payment methods, as most expenses and transfer delays were driven by friction at fiat on- and off-ramps rather than the blockchain itself.

Researchers tested 200 USDC (USDC) remittances across 10 two-way payment corridors connecting Italy with Brazil, Argentina, Japan, the United Arab Emirates, and South Africa. They compared end-to-end costs and settlement times with those of traditional remittance services and found that exchange charges and currency conversion accounted for most of the overall cost, while blockchain transaction fees contributed only a small portion.

Across the stablecoin remittances analyzed, total costs ranged from 0.3% to nearly 9%, depending on the payment corridor. Transfers were completed in under 20 minutes where instant payment systems were available, while corridors without such infrastructure required one to two business days for settlement.

Using the World Bank’s reported global average remittance cost of 6.65% as a benchmark, the study found that stablecoin transfers were cheaper across most of the payment corridors analyzed. However, they were more cost-effective than Wise in only three of the seven comparable corridors.

Payment Infrastructure Remains Key to Efficient Transactions#

The study concluded that greater investment in domestic instant payment infrastructure could strengthen the competitiveness of stablecoin-based cross-border payments. Researchers found that settlement times depended largely on the efficiency and quality of local payment rails.

The authors argued that the greatest benefits could emerge once stablecoins no longer need to be converted back into fiat currency, writing:

If stablecoins could be spent directly in the real economy, for goods and services, rents, or school fees, without reconversion into local fiat currency, the economic advantages of stablecoin-based transfers would be substantially higher.

Regulation Plays a Key Role in Remittance Efficiency#

The study also found that regulatory design plays a significant role in determining the efficiency of cross-border transfers. The authors said prohibition-focused regulatory regimes failed to eliminate demand for stablecoins and instead pushed users toward offshore platforms and other unregulated channels, while overly restrictive rules increased operational complexity for retail users.

The findings come as the European Union has implemented its Markets in Crypto-Assets (MiCA) framework and the United States has introduced the GENIUS Act, two regulatory frameworks that govern crypto assets and payment stablecoins, respectively.

According to DefiLlama data, the stablecoin market has expanded to approximately $307 billion, marking an increase of about 16% over the past year.