Banca d'Italia Study Finds Stablecoins May Not Be Cheaper for Cross-Border Transactions

A recent experiment by Banca d'Italia found that stablecoins may not always be cheaper for cross-border transactions.

The researchers sent USDC between Italy and five other countries, comparing costs and speeds with conventional alternatives. The results show that most charges came from funding, conversion, and withdrawal rather than the onchain transfer itself.

The experiment used a real-world scenario, conducting transfers of 200 USDC across ten routes connecting Italy with Argentina, Brazil, South Africa, the UAE, and Japan in March 2026. The study found that while USDC was cheaper on some routes, it was more expensive on others, contradicting the claim that stablecoin remittances are always cheaper.

The researchers noted that the blockchain stage averaged only 0.4% of the amount sent, with the largest charges appearing before or after the transfer. The study's findings suggest that local payment rails can significantly impact the speed and cost of cross-border transactions.