A July study released by the Bank of Italy found that stablecoin remittances do not consistently beat traditional transfer services on either cost or speed. The bank examined 10 USDC-based remittance corridors and found total costs ranged from 0.30% to nearly 9%. On average, the blockchain portion accounted for just 0.4% of the total, while most fees came from foreign exchange conversion, on- and off-ramping, and related cash-in and cash-out processes.
The comparison also showed that only three of the 10 corridors were cheaper than Wise. On settlement times, the on-chain leg averaged less than 15 minutes, but final completion still depended on banking infrastructure. Corridors using instant payment systems such as Italy’s TIPS and Brazil’s Pix could finish within 20 minutes, while the South Africa route took one to two business days. Researchers said stablecoins and instant payment systems should be seen as complementary rather than substitutes.
A July study released by the Bank of Italy found that stablecoin remittances do not offer a broad advantage over traditional transfer services in either cost or speed.
The study tested 10 USDC remittance corridors and found total costs ranging from 0.30% to nearly 9%. The blockchain leg made up only 0.4% on average, while the main expenses came from foreign exchange conversion, cash-in and cash-out, and on-ramp and off-ramp services.
Only three of the corridors were cheaper than Wise, according to the comparison.
On speed, the on-chain portion took less than 15 minutes on average, but full settlement still depended on banking systems. Corridors using instant payment systems such as Italy’s TIPS and Brazil’s Pix were able to complete within 20 minutes, while the South Africa route required one to two business days.
The researchers said stablecoins and instant payment systems are complementary rather than direct substitutes.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
