Stablecoin Costs Driven by Fiat Currencies, Not Blockchain
A study by the Bank of Italy examined the performance of stablecoins in cross-border payments. Researchers compared costs, delays, and obstacles encountered during several transfers between Italy and other countries.
The study found that conversion fees into fiat currencies explain most of the observed cost differences. Fees related to blockchain represent only a small part of the total amount paid during transfers in stablecoins.
The researchers made 200 transfers in USDC digital dollars, studying ten bidirectional payment corridors linking Italy to Brazil, Argentina, Japan, the United Arab Emirates, and South Africa. The overall stablecoin transfer costs varied between 0.3% and nearly 9%, mainly coming from currency exchange operations and local infrastructures.
The study authors believe that the quality of national payment networks largely determines the speed of transfers. When instant payment systems were available, stablecoin operations were settled in less than twenty minutes. Conversely, payments took between one and two business days in countries lacking these infrastructures.