Bank of Italy: Stablecoin remittances lack consistent cost advantage

A study by the Bank of Italy has found that stablecoin-based remittances do not consistently offer a cost or speed advantage over traditional payment methods. Researchers tested 200 USDC remittances across 10 international payment corridors, with end-to-end costs ranging from 0.3% to nearly 9% of the transferred amount. While blockchain transaction fees were minimal, the bulk of expenses stemmed from converting fiat to stablecoins and back, foreign exchange spreads, and local banking charges. Settlement times also varied widely, from under 20 minutes with instant payment systems to up to two business days with conventional bank transfers. The study concluded that stablecoins effectively move value on-chain but have yet to overcome the costly "last mile" of converting to and from local fiat currencies. However, the Bank of Italy noted that stablecoins can reduce costs in specific corridors and offer advantages in always-on settlement and programmability.