A Bank of Italy study has revealed that stablecoin remittances incur costs of up to 9%, showing no consistent edge over traditional banking channels. According to the central bank's mystery shopping study, the Bank of Italy sent 200 USD Coin (USDC) across ten real-world corridors linking Italy with Argentina, Brazil, South Africa, the United Arab Emirates, and Japan. The study found that total transfer costs ranged from 0.3% to nearly 9% of the amount sent, with the on-chain blockchain transfer itself averaging just 0.4% of total cost. Researchers tracked five phases of each transfer, from funding an exchange account to withdrawing cash at the destination, finding that funding, currency conversion, and withdrawal drove almost all of the expense.
The study identified that fiat conversion, not blockchain technology, drives the majority of costs in stablecoin transfers. As reported by the Bank of Italy, a United Arab Emirates to Italy transfer exemplified the problem, where the sender had no bank transfer option and had to fund the trade with a credit card carrying a 3.8% surcharge, pushing the total cost to nearly 9%. Against the World Bank's country-specific benchmarks, stablecoins beat traditional costs in every corridor tested except the UAE. The Bank of Italy also compared USDC against Wise, a money transfer operator, on the same routes, finding that stablecoins came out cheaper on three corridors and more expensive on four others, undercutting any claim of a consistent edge.
Execution times varied significantly based on domestic payment infrastructure. According to the study, transfers settled in under 20 minutes wherever instant payment systems existed, with Brazil's Pix network and the euro area's TARGET Instant Payment Settlement (TIPS) service both qualifying. However, South Africa lacked that kind of infrastructure, with stablecoin transfers taking one to two business days, matching the same timeline as conventional bank wires. The findings suggest that domestic payment rails determine speed rather than the underlying technology.
The study reviewed global stablecoin rules and identified Europe's Markets in Crypto-Assets Regulation (MiCA) as among the more comprehensive regimes. As reported by the Bank of Italy, a related review of Europe's post-MiCA crypto market found Circle remains the dominant compliant stablecoin issuer. However, the study noted that strict regulation carried its own cost, with Japan's rules pushing users toward unregulated wallets rather than curbing demand, leaving an open question for policymakers regarding whether looser on-ramp rules could close that gap.
