Stablecoin Remittance Costs Reach 9% End-to-End, Matching Traditional Providers

Bank of Italy study reveals stablecoin remittances incur 0.3%-9% total costs due to fiat conversion fees, negating on-chain savings and matching traditional provider rates.

Woofun AI reports that a Bank of Italy study found stablecoin-based remittances are not systematically cheaper than conventional operators when full journey costs are included. Researchers tracked 200 USDC transfers across 10 corridors, revealing end-to-end costs ranging from 0.3% to nearly 9%. Settlement times varied from 20 minutes to two business days. Network gas fees were negligible; primary expenses stemmed from fiat-to-stablecoin conversion, foreign exchange spreads, and domestic banking fees. The study notes stablecoins only offer cost advantages if recipients hold crypto, as off-ramp intermediaries reintroduce fees.