Bank of Italy Test Shows Stablecoin Remittances Cost Up to 9%

Test Parameters and Findings

The Bank of Italy conducted a test of stablecoin-based remittance corridors across 10 routes and measured end-to-end costs including on-ramps, off-ramps, and settlement. Fees hit 9% in the highest-cost corridors, with fiat conversion and liquidity provisioning on either end of the transaction accounting for the majority of the total charge.

Where Costs Concentrate

The test revealed that blockchain transaction fees themselves represent a small fraction of the total cost. Instead, the primary expense drivers are the on-ramp services (converting fiat to stablecoin) and off-ramp services (converting stablecoin back to local fiat). These intermediation steps, which sit outside the blockchain layer, dominate the remittance economics despite the speed and settlement efficiency gains that stablecoins enable on-chain.

Implications for Remittance Markets

The 9% ceiling measured in the test remains competitive with traditional wire transfer and money transfer operator fees in some corridors, though meaningfully higher than best-in-class services available in mature markets. The Bank of Italy's findings suggest that stablecoin remittances may face structural cost headwinds in corridors where fiat liquidity is thin or regulatory compliance requirements are expensive to satisfy.

Why It Matters

For Traders

Stablecoin remittance demand remains a stated thesis for USDC and USDT adoption, but 9% friction reveals the use case may take longer to scale than protocol narratives suggest.

For Investors

Central bank testing of stablecoin remittances signals cautious regulatory openness, though cost structures show the value proposition hinges on fiat infrastructure efficiency, not blockchain speed.

For Builders

Remittance-focused protocols should model fiat liquidity costs and compliance expenses separately from on-chain logic; blockchain efficiency alone does not overcome fragmented off-chain liquidity pools.