Stablecoin Transfers Not Always Cheaper Than Traditional Methods: Bank of Italy Study

A new study by the Bank of Italy has shed light on the costs associated with using stablecoins for international money transfers. The research, which used a 'mystery shopper' method to test the fees charged by various exchanges and payment providers, found that total transfer costs varied widely, ranging from 0.3% to 9% of the amount sent.

The study covered 10 different corridors, including Argentina, Brazil, South Africa, the United Arab Emirates, and Japan, with 200 USDC transfers sent from Italy. The results showed that while network fees accounted for a negligible portion of the total cost, the primary financial burden emerged during the phases of moving from Euro to USDC and back.

The report highlights the hidden costs involved in conversion processes, including exchange rate spreads and fees charged by intermediaries. This makes it challenging for stablecoin remittances to establish a systematic cost advantage over traditional operators.