Bank of Italy Research Finds Stablecoins Not Always Cheaper for Remittances

The Bank of Italy conducted a mystery-shopping experiment to compare the costs of remittances using stablecoins versus traditional transfer methods. The research found that, despite the perception of lower costs, stablecoin remittances often do not result in savings for users. This is primarily due to exchange fees, foreign exchange spreads, and banking rails that add to the overall expense.

The study highlights that the actual cost of sending money via stablecoins can be comparable to or even higher than conventional methods, depending on the specific transaction and service provider. These findings suggest that the assumed cost-effectiveness of stablecoins for cross-border remittances may be overstated.

Regulators and market participants should consider these factors when evaluating the role of stablecoins in international money transfers. The research underscores the importance of transparency and efficiency in the evolving landscape of digital remittances.