Stablecoin Remittances Face Reality Check in Banca d’Italia Study
A new study from Italy’s central bank challenges one of the crypto industry’s biggest selling points: that stablecoins can make cross-border remittances cheaper and faster than traditional payment networks. Banca d’Italia’s research examined remittance corridors involving Italy, Argentina, Brazil, South Africa, the United Arab Emirates, and Japan, comparing USDC transfers against established…
A recent study by Italy’s central bank, Banca d’Italia, has questioned the widely touted benefits of stablecoins for cross-border remittances. The research compared USDC transfers to conventional money transfer services across five regions: Italy, Argentina, Brazil, South Africa, the United Arab Emirates, and Japan. The findings revealed that stablecoin transfers did not demonstrate a cost advantage, with total costs ranging from 0.3% to nearly 9%.
In some cases, digital-dollar transfers even proved more expensive than traditional remittance providers. Experts attribute this to the distinction between low-cost blockchain settlement and the expensive networks associated with it. The study’s authors noted that stablecoins are only economically advantageous for large transaction amounts, typically above $100,000, which is significantly smaller than the $1 million threshold used by traditional correspondent banking services.
The research aligns with broader findings that while blockchain settlement is fast and cheap, moving money into and out of legacy networks remains costly. The real cost lies in on- and off-ramps, which require integration with existing banking infrastructure. Industry experts predict that stablecoins will coexist alongside traditional rails, offering users a choice between cheaper, faster, and more secure transactions when necessary.
Written by urgent.news from Global Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
