Stablecoin Remittances Face Reality Check in Banca d'Italia Study

A new study from Italy's central bank has cast doubt on the claim that stablecoins can make cross-border remittances cheaper and faster than traditional payment networks.

The Banca d'Italia research examined remittance corridors involving Italy, Argentina, Brazil, South Africa, the United Arab Emirates, and Japan, comparing USDC transfers against established money transfer services. Its conclusion was sobering: stablecoin transfers showed no systematic cost advantage, with total costs ranging between 0.3% and nearly 9%, meaning digital-dollar transfers were sometimes more expensive than conventional remittance providers.

Payment industry veterans pointed out that the study's findings are not necessarily a rejection of digital money, but rather highlight a broader structural issue: while settlement on the blockchain is fast and cheap, moving money into and out of legacy networks remains costly. This is due to 'on- and off-ramping', which requires navigating expensive legacy payments infrastructure.

Experts agree that judging stablecoins solely on current consumer remittance pricing misses the broader trajectory of payment rails. They predict that in five years, stablecoins will coexist alongside legacy fiat rails as one option among many, with banks struggling to tie everything together and consolidate fragmentation into a single, interoperable platform.