A study by the Bank of Italy suggests stablecoins do not consistently lower costs for international money transfers. Researchers found that fiat conversion and payment infrastructure, not blockchain fees, are the main cost drivers for remittances.
The Bank of Italy recently researched stablecoins for international money transfers, also known as remittances. Stablecoins are cryptocurrencies pegged to stable assets like the US dollar, aiming for price stability. Their study found that while stablecoins use blockchain technology, the actual savings on transfer costs are not always clear. The main expenses come from converting regular money (fiat) into stablecoins and back again, and from using existing payment networks. Blockchain transaction fees, surprisingly, were not the biggest factor in the total cost. This means that better infrastructure for fiat conversion and payments is key to making stablecoin remittances truly cheaper.
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