Bank of Italy research challenges stablecoin remittance cost advantage, finding fees and FX spreads erode savings.
DeFi & Yields ·
Research from Italy's central bank found that stablecoin-based remittances do not reliably offer cost savings compared to traditional methods, with transaction fees, foreign exchange spreads, and banking infrastructure costs offsetting any theoretical advantages. The analysis examined how multiple friction points accumulate across the remittance chain, eroding the narrative that blockchain-based transfers represent a cheaper alternative for cross-border payments.
The research highlights how FX spreads and banking rail costs—elements often overlooked in simplified stablecoin value propositions—act as material expense layers that narrow or eliminate price advantages. Even when stablecoin transactions reduce some settlement friction, downstream conversion and banking fees can restore cost parity with or exceed conventional remittance channels.
The findings challenge assumptions underpinning stablecoin adoption in emerging markets, where remittance corridors are typically cited as a primary use case. What remains unclear is whether the research evaluated specific remittance routes or providers, or assessed how competitive dynamics and infrastructure maturation might alter these conclusions over time.