A new study from the Bank of Italy challenges a common assumption about stablecoins in cross-border payments: using stablecoin transfers for remittances may not automatically deliver better economics or faster delivery than established payment rails once the full cost chain is co...
- A Bank of Italy study found that stablecoin remittances do not consistently offer lower costs or faster delivery than traditional methods due to significant fiat on- and off-ramp frictions.
- Exchange and currency conversion fees were the primary cost drivers, not blockchain transaction fees, and settlement times were largely dependent on local instant payment systems.
- Improvements in domestic payment infrastructure and direct spending of stablecoins are likely to be more impactful than blockchain technology alone for improving remittance efficiency.
Topics: Asset types, Integration with defi, Jurisdictions, Stablecoins digital cash, Payment system integration, Crossborder transactions, Regulatory sandboxes pilots
Tags: #stablecoinremittances #bankofitaly #crossborderpayments #usdc #onrampofframp #fiatconversion #settlementtime #remittancecosts #paymentinfrastructure #regulation