Bank of Italy report finds stablecoin remittances lack cost advantage

The Bank of Italy reported that stablecoin-based cross-border remittances provide minimal benefits over traditional financial networks in terms of cost and speed. The analysis covered 10 remittance corridors connecting Italy, Argentina, Brazil, South Africa, the United Arab Emirates, and Japan. Average on-chain blockchain transfer fees were 0.4%, but most expenses occurred during fiat conversion via banks and exchanges, including account deposits, foreign exchange, and cash withdrawals. Stablecoins were cheaper in only three corridors compared to traditional provider Wise, while being more expensive in four. The report indicated that stablecoins, despite seeming to bypass banks, still rely on traditional financial infrastructure for cash-out processes.

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