Stablecoin Remittances Face Hidden Costs Up to 9%

The Bank of Italy has released a study on stablecoin remittance costs, revealing that they can reach nearly 9% in some payment corridors. This challenges the assumption that blockchain-based payments are always cheaper than traditional remittance systems.

The study found that currency conversion fees are the largest contributor to stablecoin transfer costs, rather than blockchain network costs. In fact, blockchain transaction fees account for only a small portion of total expenses.

This means that users may still encounter high costs when converting between fiat currencies and digital assets. The Bank of Italy's research highlights the importance of improving the efficiency of the broader financial ecosystem surrounding digital assets.