Stablecoins Fail to Deliver Cheaper and Faster Remittances

The promise of stablecoins as a cheaper and faster alternative to traditional money transfers has been put to the test by the Bank of Italy. A new study published on July 30, 2026, used actual transfers of 200 USDC across ten real corridors between Italy and countries such as Argentina, Brazil, South Africa, the UAE, and Japan. The results show that stablecoins do not consistently cut costs or guarantee fast delivery.

The study's key finding is that total transfer costs ranged from 0.30% to almost 9% of the amount transferred, depending on the corridor and service providers involved. This challenges a widely held assumption in the crypto payments space that stablecoins offer a systematic cost advantage over traditional remittance channels.

The Bank of Italy's researchers found that the on-chain leg of the transfer had only a marginal impact on total costs, meaning the blockchain itself is not the bottleneck. The real friction lies at the entry and exit points, including acquiring the stablecoin, converting it back to local fiat, and navigating domestic financial infrastructure.