Stablecoins aren't the cheap remittance tool they're often billed as, according to new research from the Bank of Italy. The central bank's study found no consistent cost advantage for stablecoin-based cross-border transfers compared with traditional methods. Instead, the researchers say, the biggest cost drivers are fiat conversion fees and the underlying payment infrastructure — not the blockchain transaction costs.
What the data shows
The Bank of Italy team analyzed a range of remittance corridors and payment methods. They compared stablecoin transfers with conventional bank wires, money transfer operators, and other digital options. The result: stablecoin costs varied widely and often matched or exceeded traditional alternatives. No single stablecoin consistently undercut the competition on price.
The real cost drivers
According to the study, the fees that eat up the most value aren't on-chain. Converting fiat currency into stablecoins — and back again — adds significant expense. So does the payment infrastructure that moves money between banks and exchanges. Those costs, the researchers found, explain most of the differences in both total cost and settlement time. Blockchain fees themselves were a minor factor.
What this means for the industry
The finding challenges a common pitch for stablecoins: that they make sending money across borders cheaper and faster. The Bank of Italy's work suggests the real bottleneck isn't the blockchain — it's the off-ramp. Until fiat on- and off-ramps get cheaper, stablecoins won't deliver on that promise. The study doesn't name any specific stablecoin or platform, but its conclusion is blunt: the technology alone doesn't cut costs.
