Stablecoin remittance costs aren't always cheaper, Bank of Italy finds

Much of the marketing around stablecoin remittances focuses on the cost of transferring tokens across blockchain networks. On Layer-2 networks and newer blockchains, moving digital dollars can cost less than a cent.

Remittance users are not buying blockchain transactions. They are moving money between two bank accounts, often in different currencies.

That distinction matters because stablecoins only deliver their headline cost advantages when both sender and recipient remain inside the crypto ecosystem. If the recipient is happy to hold USDC, spend stablecoins directly or pay merchants that accept them, the blockchain transfer itself is remarkably cheap.

In the real world, most recipients ultimately need local currency to pay rent, buy groceries or settle utility bills. Every conversion between fiat and stablecoins introduces another intermediary, typically a centralized exchange, broker or payments provider, along with additional fees and foreign exchange markups.

Rather than eliminating middlemen entirely, today's stablecoin remittance market often replaces traditional correspondent banks with a different set of intermediaries.

That does not mean the technology has failed.

The Bank of Italy notes that stablecoins can reduce costs in specific corridors, while their always-on settlement and programmability remain meaningful advantages over legacy payment rails. The study simply argues those benefits do not yet translate into consistently cheaper remittances once the entire payment chain is considered.

The report also points toward what may ultimately unlock stablecoins' original promise. As regulated off-ramp providers proliferate under frameworks such as Europe's MiCA regime and domestic instant payment systems become more closely integrated with digital asset infrastructure, competitive pressure could narrow conversion fees. Even then, foreign exchange spreads are likely to remain an unavoidable component of international payments.

For now, the research suggests stablecoins have solved the problem of moving value across blockchains. The harder and more expensive challenge remains getting that value into the hands of someone who simply wants to spend it.