Research reported by Cointelegraph and CoinDesk says the Bank of Italy does not find a consistent cost advantage for stablecoin-based remittances. In the study, differences in the total cost and settlement time of stablecoin transfers are attributed mainly to fiat conversion and payment-related factors, not to blockchain transaction fees. Both accounts describe that when stablecoins are used, users still must convert fiat into and out of crypto and rely on exchange services and traditional financial “rails” to complete the transfer. The research points to exchange fees, foreign-exchange spreads, and the role of banking infrastructure as key drivers of remittance costs, which can offset any savings from using blockchain networks. As a result, the findings indicate that stablecoin remittances are frequently comparable in price to conventional methods rather than consistently cheaper. The study frames this as a comparison of end-to-end remittance execution, rather than focusing only on on-chain costs, suggesting that the overall economics depend on the off-chain steps that users and providers must perform.
Bank of Italy research finds stablecoin remittances often not cheaper than traditional transfers
Research reported by Cointelegraph and CoinDesk says the Bank of Italy does not find a consistent cost advantage for stablecoin-based remittances. In the study, differences in the total cost and settl...
- The Bank of Italy research finds no consistent cost advantage for stablecoin remittances over traditional transfer methods.
- Fiat conversion and related exchange costs account for most differences in remittance costs and settlement times.
- Exchange fees and foreign-exchange spreads are significant components of stablecoin remittance costs.
- Banking/payment infrastructure (“rails”) play a major role in determining total cost and timing.
- Blockchain transaction fees alone do not explain the observed differences in remittance outcomes.
A mystery-shopping experiment found that exchange fees, foreign exchange spreads and banking rails mean stablecoin remittances are often no cheaper than traditional transfer means.
2 hours agoResearchers 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.
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