Bank of Italy Study Challenges Assumption on Stablecoin Remittances

A recent study by the Bank of Italy has found that stablecoin remittances do not always cut costs, challenging a common assumption in the industry.

The researchers evaluated 200 USDC remittance flows across 10 bidirectional payment corridors connecting Italy with Brazil, Argentina, Japan, the United Arab Emirates and South Africa.

The study found that exchange and currency-conversion charges made up the majority of total remittance costs, while blockchain transaction fees were only a small portion.

Total stablecoin remittance costs ranged from 0.3% to nearly 9%, depending on the corridor, while settlement time was typically under 20 minutes where instant payment systems were available.