A Bank of Italy study has found that stablecoin remittances do not deliver a consistent cost or speed advantage over traditional payment channels. While some stablecoin transfers came in below average remittance costs, the research said they did not reliably outperform the best established providers in the market.
The study points to fiat conversion as the main reason. According to the findings, much of the total expense in stablecoin-based remittances comes from moving money into and out of digital tokens, rather than from the blockchain transfer itself. Those on- and off-ramp steps can add enough friction to limit any savings from using stablecoins.
That means the headline promise of cheaper cross-border payments is not always matched by the full user experience. Even if the token transfer is fast, the overall transaction still depends on how efficiently senders can buy stablecoins and recipients can convert them back into local currency.
The Bank of Italy’s conclusions add nuance to the debate around stablecoins in payments. The research suggests stablecoin remittances may work well in some cases, but they are not yet a clear, across-the-board replacement for traditional remittance services when total costs and processing times are measured end to end.
