Stablecoins May Not Be Cheaper for Sending Money Overseas

Many people assume that using stablecoins for remittances is the most affordable way to send money across borders. However, a recent study from the Bank of Italy suggests that may not be the case. Researchers conducted a mystery shopping experiment to compare digital asset transfers with traditional banking methods.

The findings show that the total cost of a stablecoin transfer often matches the fees seen in standard banking channels. While the blockchain transaction itself might be inexpensive, high exchange spreads and the costs associated with cashing out into local currency add up quickly.

These hidden costs mean that users are not always saving money by opting for crypto. For those looking to send funds globally, it is important to look beyond just the network fee and consider the entire path the money takes before reaching the recipient.

Traders and users should watch how these platforms adjust their pricing models in the future. As banking services improve their own speed and cost structures, the competitive edge of stablecoins for simple remittances could continue to tighten.