Bank's Stablecoin Experiment Reveals Cheaper Isn't Always Better

A recent experiment by the Bank of Italy found that stablecoins are not always cheaper than conventional remittance methods. The researchers conducted real transfers of USDC between Italy and five other countries, measuring costs and speeds across ten routes.

The study found that most costs came from funding, conversion, and withdrawal rather than the onchain transfer itself. The blockchain stage averaged only 0.4% of the amount sent, with the largest charges appearing before or after USDC was transferred.

In some cases, USDC was cheaper than conventional alternatives, while in others it was more expensive. For example, a credit-card surcharge contributed to a combined funding and USDC purchase cost of 6.17% on the UAE-to-Italy route, making it one of the most expensive options.