Bank of Italy Study: Stablecoins Not Always Cheaper for Remittances, New Research Shows

The Bank of Italy has released a new research paper challenging the assumption that stablecoins are inherently more cost-effective for cross-border remittances. The study, conducted by the central bank's economists, suggests that while stablecoins like USDT and USDC offer certain advantages such as speed and 24/7 availability, their overall transaction costs—including exchange fees, network gas fees, and the bid-ask spread when converting to fiat currencies—can often exceed those of traditional banking channels or established fintech services. The research highlights that for smaller remittance amounts, legacy systems like SWIFT or specialized money transfer operators (MTOs) frequently remain cheaper. The findings add a nuanced perspective to the ongoing debate about the real-world utility of digital assets in the payments sector, indicating that the cost-efficiency of stablecoins is highly dependent on the specific corridor, the liquidity of the trading pair, and the regulatory environment. This analysis from the Italian central bank could influence future policy discussions regarding the regulation of stablecoin issuers within the European Union's Markets in Crypto-Assets (MiCA) framework.