Bank of Italy: Stablecoins Cost Just As Much As Fiat Wires

A fresh study by the Bank of Italy reveals that sending money using stablecoins is not always cheaper than traditional methods. Researchers sent USD Coin across ten global corridors to test real world costs. Total fees ranged widely from 0.3 percent to nearly 9 percent of the total amount sent.

The actual blockchain transfer fees were very low, averaging just 0.4 percent of the total cost. Instead, expenses came from funding accounts, converting fiat currency, and withdrawing cash at the destination. Traditional banks and crypto exchanges handle these steps, which keeps overall costs high.

Speed also depended heavily on local banking infrastructure rather than crypto technology. Transfers took under 20 minutes in places with instant payment networks, but took days in regions lacking fast rails. Traders should watch how future regulatory changes and better on ramps might lower fiat conversion fees moving forward.