The Bank of Italy released a study revealing that the main expense in stablecoin transfers arises from conversion fees into traditional currencies, not blockchain fees. The research involved 200 transfers of USDC across ten corridors linking Italy to countries like Brazil, Argentina, and Japan.
Transfers using stablecoins settled quickly under 20 minutes where instant payment systems exist, or up to two days otherwise. Despite the speed, costs varied widely from 0.3% to nearly 9%, largely due to currency exchange and local payment infrastructure challenges. This challenges the common belief that blockchain inherently slashes international payment costs.
Comparing Costs and Efficiency
The study’s data showed these stablecoin transfers were often cheaper than the global average international payment cost of 6.65% reported by the World Bank. Still, in some corridors, traditional platforms like Wise offered better rates. The findings suggest that stablecoins’ cost advantages depend heavily on specific currency pairs and payment systems in place.
As the stablecoin market grows now valued at approximately $307 billion with a 16% annual rise the study calls for stronger payment infrastructure to truly unlock these digital assets’ potential in cross-border payments.
This material is for informational purposes and does not constitute financial advice.
