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Bank of Italy Finds No Consistent Cost Advantage for Stablecoin Remittances
Research by the Bank of Italy indicates that blockchain fees are not the primary driver of costs in stablecoin remittances. Instead, fiat conversion expenses and existing payment infrastructure play a more significant role.
AS1 NewsSource: cointelegraph.com
BANKThe Bank of Italy has conducted a study on the costs associated with stablecoin remittances. The findings suggest that the differences in settlement times and costs are mainly due to fiat currency conversion expenses and the underlying payment infrastructure, rather than blockchain transaction fees. This indicates that the efficiency of stablecoin remittances may depend more on traditional financial processes than on the blockchain technology itself.
The research analyzed various remittance pathways and compared the associated costs and settlement durations. Results showed no consistent cost advantage for stablecoins over conventional remittance methods, emphasizing the importance of the existing financial infrastructure.
These findings could influence how regulators and financial institutions approach the integration of stablecoins into cross-border payment systems. While blockchain technology offers potential benefits, the study underscores that the overall cost-effectiveness of stablecoin remittances is heavily influenced by fiat conversion processes and payment infrastructure quality.
Highlights that stablecoin remittance costs are more affected by fiat conversion and infrastructure than blockchain fees, informing future regulatory and infrastructural considerations.