Bank of Italy Study Finds Stablecoins No Cheaper Than Traditional Remittances
A new mystery shopping study from the Bank of Italy, Italy's central bank, found stablecoins offer no systematic cost advantage over traditional remittance channels.
The Bank of Italy sent 200 USD Coin (USDC) across ten real-world corridors. The routes linked Italy with Argentina, Brazil, South Africa, the United Arab Emirates, and Japan.
Fiat Conversion, Not Blockchain, Drives Costs
Total transfer costs ranged from 0.3% to nearly 9% of the amount sent, the study found. That range straddles the United Nations' target of cutting remittance costs below 3% by 2030.
Researchers tracked five phases of each transfer, from funding an exchange account to withdrawing cash at the destination. The on-chain blockchain transfer itself averaged just 0.4% of total cost.
Funding, currency conversion, and withdrawal drove almost all of the expense instead. Those are the steps that still run through banks and exchanges rather than the blockchain.
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