Stablecoin remittances hit 9% in Bank of Italy test
Banca d'Italia has released a July 2026 study finding that stablecoin remittances do not consistently beat traditional transfer services on cost or speed.
Summary
- Ten USDC corridors produced total remittance costs ranging from 0.30% to nearly 9%, researchers found.
- Under 20 minutes was achievable where instant payment systems supported both fiat conversion endpoints efficiently.
- Three corridors beat Wise, while four cost more, showing stablecoin savings remained highly corridor-specific overall.
Researchers executed real transfers of 200 USDC across ten corridors linking Italy with Argentina, Brazil, South Africa, the United Arab Emirates and Japan.
The mystery-shopping study recorded total costs from 0.30% to almost 9%. The blockchain leg averaged only 0.4%, while exchange purchases, funding methods, withdrawals and foreign-exchange conversion produced most of the expense. The authors said stablecoins showed "no systematic cost advantage" over traditional channels.
Stablecoin remittance costs varied sharply by corridor
The Italy-to-Argentina transfer was the cheapest at 0.30%, while Argentina-to-Italy cost 8.96%. The study warned that the low outbound Argentina result partly reflected differences between the country's official and market exchange rates, rather than blockchain efficiency alone.
Brazil-to-Italy cost 2.21%, compared with 2.70% in the opposite direction. South Africa-to-Italy cost 5.44%, while Italy-to-South Africa reached 4.58%. The two UAE routes were among the most expensive at 7.20% and 8.95%, partly because card funding and withdrawal charges increased the total.
USDC beat Wise in only three comparable routes
Banca d'Italia compared its transactions with Wise simulations for the same $200 amount. USDC was cheaper in three routes: Italy to Argentina, Italy to South Africa and Brazil to Italy. It was more expensive in four, including both UAE routes and Italy to Brazil.
The researchers cautioned that the transfers and Wise simulations occurred on different dates. They also described the World Bank comparison as an indicative benchmark rather than a like-for-like test. The paper covers one stablecoin and a limited number of transactions, so its findings "cannot be readily generalized" to every provider or corridor.
Fast domestic payments determined transfer speed
The onchain portion took less than 15 minutes in seven of eight directly comparable corridors. However, complete settlement depended on the banking systems used to fund exchanges and withdraw local currency.
Transfers involving Italy's TIPS, Brazil's Pix and Argentina's Transferencias 3.0 finished in under 20 minutes. South African routes took one or two business days because standard bank transfers slowed the fiat endpoints. The study therefore found that stablecoin rails and domestic instant-payment systems worked as complements, not substitutes.
Japan presented a separate problem. The Japan-to-Italy transfer cost 1.6%, but regulatory limits required an unhosted wallet and fragmented transactions, making the process unsuitable for a direct timing comparison. The reverse route cost 1.3% without completing the final off-ramp.
-- Price
Better on-ramps may matter more than cheaper blockchains
The findings support Banca d'Italia Governor Fabio Panetta's May assessment that stablecoins may work in selected corridors but do not provide a universal answer to expensive remittances. He argued that regulators should improve domestic payment infrastructure and connect fast-payment systems across borders.
A March 2026 BIS paper reached a related conclusion, identifying weak interoperability, fragmented standards and institutional differences as the main barriers to cheaper cross-border payments. That suggests blockchain settlement alone cannot remove compliance, banking and local-currency bottlenecks.
Industry deployments continue to test the other side of the argument. As crypto.news reported, Borderless.xyz found competitive stablecoin pricing across 260 business-payment corridors during the second quarter. In related coverage, a Hyundai trial moved $20,000 between the U.S. and Mexico in about seven minutes, while SBI Remit partnered with Fasset to develop stablecoin remittance infrastructure.
Those cases do not directly contradict the central-bank experiment. They involve different transfer sizes, business models and endpoints. The next step is broader testing across more tokens, providers, dates and transaction amounts, with full disclosure of exchange spreads, withdrawal costs and local payout times.
This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.
You may also like

S&P 500 Q2 Earnings Growth of 31%, Year-End Target Raised to 7894 Points

Nansen CEO bets on AI agents to overtake human traders within two years

The Government Officialized New Salary Supplements for Security Forces: Who Receives Them and How Much

Bitcoin: Ark Invest Bets $37.4 Million on Block

Attacks on Logistics Infrastructure Change Job Market Geography: Where Demand for Workers is Growing

AI + Blockchain: Building Not a Narrative, But an 80 Billion Customer Gateway

XRP investors poured $320M into ETFs while the funds sat on a $746M paper loss

2026 Crypto TradFi Landscape Report: How Competition Evolves Under Explosive Growth? | RootData Research

Analyzing 43,000 Hyperliquid Accounts: Unveiling the Profit Systems of 12 Top Traders

UK's National Crime Agency Freezes $13.6M of Premier League Money in Sorare Probe: Report

Treasuries at Highest Level Since 2025: What It Means for Investors

Morgan Stanley Analysis: Has the Commercialization Turning Point for Zhipu Arrived with a 4-Fold Revenue Growth in Half a Year?

Asian Markets Fall Amid Oil and Interest Rate Concerns

Back to School 2026: Train in AI and Blockchain with Alyra

Latest Holdings of AllianceDAO and FOMO Founders: 70% in US Stocks, Only BTC and Zcash in Crypto

The Mathematics of Cryptocurrency Drawdowns: Why a 100% Increase is Needed After a 50% Loss and How to Protect Your Account Assets

Leaked Brazilian Data: State Failure Exposes 213 Million Citizens

Bitcoin Under High Leverage: A Rebound or a Trap?

€30,000 to Read a Contract Aloud: German Notary Fee Goes Viral After Musk's ‘Wow'

From NET to CRWD: Is Money Flowing into Cybersecurity Companies in the AI Second Half?

The Most Accurate Trading Analysis: Strategies, Indicators, and How to Use Them - Fintech World

A Practical Guide to FOMO: How to Find People and Coins in Social Trading?

Alpaca Partners with Kalshi to Add Prediction Markets to Its Stock and Cryptocurrency Infrastructure

Crypto May Be in a Very Good Selective Buying Window

Park Young-sun: "The Second Act of the AI Economy Begins... Agents, Stablecoins, and Physical AI"

Cronos restarts network after emergency halt over Tectonic exploit

NOT A HOTEL Announces Collaboration with Pokémon

Ripple unlocks 1B XRP as escrow falls to 31.28B

Latest Non-Farm Payroll Forecast: Job Growth May Slow, Fed Faces Complex Choices



