Banca d'Italia Study Reveals Widespread Fiat Conversion Fees Drive USDC Remittance Costs

A recent study by Banca d'Italia found that remittance costs using USDC (USD Coin) can range from 0.3% to 9%, with fiat conversion fees being the main contributor to this variation.

The study, which took place in March 2026 and involved transfers across 10 international corridors, showed that stablecoin-based remittances do not consistently offer a cost advantage over traditional transfer services.

Researchers found that exchange trading fees, foreign exchange spreads, and fiat deposit and withdrawal charges accounted for nearly all of the costs in every corridor tested. The on-chain blockchain transfer of USDC was the cheapest component, averaging 0.4% of the total transferred amount across all corridors.

The study also highlighted the importance of domestic payment infrastructure in determining settlement times. In Italy, Brazil, and Argentina, where instant payment systems are available, transactions were completed within under 20 minutes. However, in South Africa, standard bank transfers resulted in end-to-end settlement times of one to two business days.

The paper concludes that stablecoins function as a complement to domestic instant payment infrastructure rather than a replacement for it, and that regulatory design is a primary factor determining the practicality and affordability of stablecoin transfers for ordinary users.