Bank of Italy: Stablecoin remittances lack consistent cost edge
In brief
- Bank of Italy study found stablecoins offer no systematic cost or speed advantage over traditional remittance channels
- Fiat on- and off-ramp frictions accounted for most costs; blockchain fees were minor
- Total costs ranged 0.3% to 9% depending on corridor; settlement took under 20 minutes or one to two business days
The Real Cost Driver: Fiat Ramps, Not Blockchain
The study's key finding challenges a core narrative in crypto payments. Exchange fees and currency conversion made up most of the cost in stablecoin remittances, while blockchain transaction fees represented only a small share. Total costs for stablecoin remittances ranged from 0.3% to nearly 9% depending on the payment corridor.
Settlement speed also hinged on infrastructure, not the blockchain itself. Stablecoin transfers settled in less than 20 minutes where instant payment systems were available and one to two business days where they were not.
Competitive Picture: Mixed Against Incumbents
When measured against the World Bank's reported global average remittance cost of 6.65%, stablecoin transfers were cheaper in most of the payment corridors examined. But the comparison to established fintech services told a different story. Stablecoin transfers were less expensive than Wise in only three of seven comparable corridors.
The gap between corridors highlighted how local payment rails matter more than the blockchain layer. Settlement times depended heavily on the quality of local payment rails in each jurisdiction.
Infrastructure and Regulation as Real Levers
The Bank of Italy researchers identified two paths forward. Investment in domestic instant payment infrastructure could improve the competitiveness of stablecoin-based cross-border payments. This framing shifts the focus from blockchain innovation to unglamorous plumbing — the on- and off-ramp ecosystem.
Regulation also shaped outcomes. The study noted that prohibitionist regulatory regimes failed to fully suppress stablecoin demand and instead pushed users toward offshore platforms and other unregulated channels. Overly restrictive regulatory frameworks increased operational complexity for retail users.
The European Union has implemented its Markets in Crypto-Assets (MiCA) framework, and the United States has enacted the GENIUS Act, two regulatory regimes that govern crypto assets and payment stablecoins. These frameworks aim to balance oversight with operational clarity — a contrast to outright prohibition.
The stablecoin market has grown to about $307 billion, up roughly 16% over the past year, signaling persistent user demand despite regulatory headwinds and mixed cost advantages.
Frequently asked questions
Why don't stablecoins offer cheaper remittances if blockchain fees are low?
The Bank of Italy study found that fiat on- and off-ramp frictions—exchange fees and currency conversion—account for most costs, not blockchain transaction fees. These ramp costs are infrastructure problems, not blockchain problems.
How fast do stablecoin remittances settle?
Settlement depends entirely on local payment infrastructure. Transfers settled in less than 20 minutes where instant payment systems were available and one to two business days where they were not.
Are stablecoins cheaper than services like Wise?
Mixed results. Stablecoin transfers were cheaper than the World Bank's 6.65% global average in most corridors tested, but undercut Wise in only three of seven comparable routes.
