A Bank of Italy study found that stablecoin remittances are not systematically cheaper than traditional money transfers [1].
The findings challenge the common narrative that blockchain-based assets automatically reduce the cost of sending money across borders. While stablecoins are often marketed as a low-cost alternative to legacy banking, this research suggests that the actual expense depends heavily on the specific corridor used [1].
To reach these conclusions, the Bank of Italy tested 200 USDC transfers across 10 payment corridors [2]. The results showed a wide variance in pricing. Total transaction costs for these stablecoin remittances ranged from 0.3% to nearly 9% [2].
The research indicates that the primary drivers of these costs are not the blockchain transactions themselves. Instead, most of the expense stems from fiat on-ramps and off-ramps, the processes of converting traditional currency into digital assets and back again [1].
These findings suggest that the efficiency of stablecoins is mitigated by the fees charged by intermediaries who bridge the gap between digital wallets and traditional bank accounts. Because these fees vary significantly by region and provider, the perceived cost-saving benefit of using a stablecoin like USDC is not guaranteed for every user [1].
The study was released on Aug. 1 [1]. It aimed to assess whether stablecoins could realistically reduce the financial burden of cross-border remittances compared with traditional banking channels [1].
“Stablecoin remittances are not systematically cheaper than traditional money transfers.”
This research highlights a critical bottleneck in the adoption of digital assets for global finance. While the underlying ledger technology allows for nearly instant and cheap transfers, the 'last mile' — moving money from a bank account into the crypto ecosystem — remains expensive. Until on-ramp and off-ramp fees are standardized or reduced, stablecoins may remain a niche tool rather than a universal replacement for traditional remittance services.
