A new study from the Bank of Italy is challenging one of the crypto industry's favorite selling points: that stablecoins offer a cheaper way to send money across borders. Using a hands-on "mystery shopping" experiment, the central bank's researchers found that once all the hidden costs are tallied, stablecoin remittances frequently cost as much as — or more than — traditional money transfer services.
What the Research Found
The Bank of Italy's team took a practical approach, actually running real transactions through stablecoin channels rather than relying on theoretical estimates. What they discovered was that the promise of low-cost blockchain transfers tends to unravel once users confront the full journey of moving money from one currency to another.
The core issue lies in the layers of fees stacked along the way. Buying stablecoins on an exchange incurs charges, converting between currencies carries foreign exchange spreads, and moving funds back into a usable local currency often depends on the same banking infrastructure that traditional remittances use.
The headline promise of near-free crypto transfers evaporates once real-world costs enter the picture.
Why the Costs Add Up
While transferring a stablecoin on-chain can be inexpensive, that step is only one part of a remittance. Senders and recipients still need to enter and exit the crypto ecosystem, and those on-ramps and off-ramps come with their own price tags.
The main cost drivers identified in the study include:
- Exchange fees charged when purchasing or selling stablecoins
- Foreign exchange spreads applied during currency conversion
- Reliance on conventional banking rails for the final cash-out step
Taken together, these factors mean that the total cost of a stablecoin remittance is often comparable to established services rather than dramatically lower. The findings serve as a reality check for claims that digital tokens will automatically slash the price of sending money home.
Implications for the Debate
Remittances have long been touted as a prime use case for stablecoins, particularly for workers sending funds to family in developing economies where fees can be steep. The Bank of Italy's research suggests that potential remains partly aspirational, dependent on how efficiently users can access and offload the tokens.
The study does not dismiss the technology outright but underscores that infrastructure and market conditions matter as much as the underlying blockchain. For stablecoins to deliver genuine savings, the surrounding ecosystem of exchanges and cash-out options would need to become cheaper and more accessible.