Bank of Italy finds no consistent cost advantage for stablecoin remittancesResearchers found that fiat conversion costs and payment infrastructure, rather than blockchain fees, accounted for most of the differences in stablecoin remittance costs and settlement times.

A study conducted by the Bank of Italy examined the cost and speed advantages of stablecoin-based remittances compared to traditional payment channels. Researchers tested 200 remittances using the stablecoin USDC across ten bidirectional payment corridors linking Italy with countries including Brazil, Argentina, Japan, the UAE, and South Africa. They found that most costs and transfer delays were caused by fiat currency conversion fees and payment infrastructure limitations, while blockchain transaction fees contributed only a small portion to overall costs.

The total costs for stablecoin remittances varied significantly between corridors, ranging from 0.3% to nearly 9%. Settlement times were faster—under 20 minutes—when instant payment systems were available locally, but took one to two business days otherwise. Using the World Bank’s global average remittance cost of 6.65% as a benchmark, stablecoin transfers were generally cheaper than traditional methods in most corridors studied, but were less inexpensive than Wise in four out of seven comparable corridors.

The Bank of Italy study emphasized that payment infrastructure quality played a critical role in settlement speed, and that investing in domestic instant payment systems could help stablecoin remittances compete more effectively. The researchers also noted that stablecoins would provide much greater economic benefits if they could be spent directly in the real economy—on goods, services, rent, or fees—without requiring reconversion into fiat currency.

Regulatory frameworks were identified as another important factor influencing remittance efficiency. The study found that prohibitionist regulations did not eliminate stablecoin demand but instead pushed users towards offshore and unregulated platforms, while overly restrictive rules increased operational complexity for users. These findings are framed in the context of recent regulatory developments, including the European Union’s Markets in Crypto-Assets (MiCA) framework and the United States’ GENIUS Act, both aimed at governing crypto assets and payment stablecoins. Overall, the stablecoin market is currently valued at approximately $307 billion, growing about 16% in the past year.