Catenaa, Friday, August 07, 2026-Stablecoins may not consistently deliver cheaper international money transfers than traditional remittance services once the full payment journey is considered, according to new research by the Bank of Italy, challenging one of the cryptocurrency industry’s most widely promoted use cases.
The central bank examined 200 USDC remittances across ten international payment corridors and found total transaction costs ranged from 0.3% to nearly 9% of the amount transferred, depending on the countries involved and the financial service providers used.
The findings suggest that while blockchain networks have largely solved the problem of moving value quickly and inexpensively, converting digital assets into usable local currency remains the biggest obstacle to reducing overall remittance costs.
The study found blockchain transaction fees represented only a small fraction of total transfer costs.
Instead, the largest expenses arose before and after the on-chain transaction through exchange trading fees, foreign exchange spreads, fiat on-ramp and off-ramp charges, and domestic banking costs.
Researchers concluded that the blockchain itself is rarely the cost bottleneck.
Rather, the “last mile” between digital assets and traditional banking systems continues to account for most consumer expenses.
Stablecoins achieve their greatest efficiency when both sender and recipient remain entirely within the digital asset ecosystem.
However, most remittance recipients ultimately require local currency to pay household expenses, purchase goods and access everyday financial services.
Every conversion between fiat currencies and stablecoins introduces additional intermediaries, increasing transaction costs and reducing the economic advantage of blockchain settlement.
The study suggests today’s stablecoin ecosystem often replaces traditional correspondent banks with crypto exchanges and payment providers rather than eliminating intermediaries altogether.
Researchers emphasized that stablecoins continue offering meaningful benefits beyond cost.
Around-the-clock settlement, programmable payments and rapid cross-border transfers remain important advantages over conventional financial infrastructure.
The report also suggests that emerging regulatory frameworks, including Europe’s MiCA regime, together with expanding digital payment infrastructure, could reduce conversion costs over time by encouraging greater competition among service providers.
The findings arrive as stablecoins become increasingly integrated into mainstream finance.
Banks, payment companies and governments are investing heavily in tokenized payment infrastructure, viewing stablecoins as foundational technology for future digital financial systems.
Rather than undermining stablecoins, the study highlights that broader ecosystem development, especially around fiat conversion and payment integration, may determine whether the technology ultimately fulfills its promise of cheaper global money movement.
The Bank of Italy’s research suggests stablecoins have largely solved the technical challenge of moving value across blockchains.
The remaining hurdle lies in connecting those digital transactions efficiently with national banking systems, where exchange fees, foreign exchange costs and payment infrastructure continue to determine what consumers ultimately pay.
Stablecoins are digital assets pegged to traditional currencies such as the U.S. dollar and have become one of the fastest-growing sectors of the cryptocurrency market. They are increasingly used for cross-border payments, trading, decentralized finance and institutional settlement. Global regulators are introducing dedicated frameworks to oversee stablecoin issuers as digital dollars become more integrated into conventional financial infrastructure.
