Bank of Italy Casts Doubt on Stablecoin Remittance Costs

A recent study by the Bank of Italy reveals that stablecoins might not be as cheap for cross border money transfers as many people think. Researchers looked at the actual costs behind these transactions and discovered that blockchain gas fees are not the main driver of expenses. Instead, the costs of converting regular fiat money and setting up payment infrastructure make up the biggest part of the final price.

This finding challenges the common belief that crypto rails always beat traditional banking on price and speed. While blockchain networks can settle transactions in seconds, the entry and exit points involving traditional currency still add heavy friction and cost. These bottlenecks prevent users from seeing the full financial benefits of using digital assets for global payments.

Traders and everyday users should watch how payment providers adapt to these hurdles. As regulators and financial institutions study these findings, the focus may shift toward lowering fiat conversion friction. If the industry fails to fix these off chain costs, stablecoin adoption for routine money transfers might grow slower than expected.