Stablecoins lack cost edge in remittances: Banca d'Italia

Stablecoins have been touted as a low-cost, high-speed remedy for cross-border payments, especially for remittances. But a new analysis from Banca d'Italia, Italy's central bank, indicates that these digital assets do not live up to that billing.

Researchers at the central bank compared stablecoin transactions with traditional channels such as bank wires and money transfer operators. They found no systematic cost advantage. Once exchange rates, conversion fees, and network charges are accounted for, stablecoins often end up just as expensive as conventional methods.

In terms of speed, the outcomes were similarly mixed. While some stablecoin transfers settle in minutes, the full journey - cashing out into local currency - can erase that edge. For many remittance corridors, traditional services are equally fast, the study concludes.

The findings carry implications for policymakers weighing the benefits of private digital money. Rather than assuming stablecoins inherently reduce costs for migrants and their families, regulators should demand evidence across specific corridors. The Italian study adds to a cautious narrative emerging among central banks about the real-world efficiency of stablecoin-based payments.