What happened
The study shows that main costs are linked to fiat conversion, not blockchain fees.
Why it matters
The study results are important for understanding the real economics of crypto payments, as they indicate that the technological efficiency of blockchain is offset by costs at the junction with the traditional banking system.
Researchers from the Bank of Italy conducted an analysis of costs for international money transfers using stablecoins. The results of the work showed no consistent cost advantage compared to traditional methods.
Experts established that the lion's share of expenses and differences in settlement times arise from fiat currency conversion costs and payment infrastructure specifics. Blockchain network fees turned out to be a secondary factor influencing the final transaction price.
The obtained data calls into question the widespread opinion that the use of cryptocurrency tools automatically makes cross-border payments cheaper. The key barrier remains traditional financial gateways, not distributed ledger technology.
Confirmed facts
- Researchers from the Bank of Italy studied the cost of transfers via stablecoins.
- Fiat conversion costs and payment infrastructure made up the bulk of expenses.
- Blockchain fees are not the main factor in the difference in cost and settlement time.
- No consistent cost advantage for stablecoins was identified.
Context
Many market participants assume that stablecoins are significantly cheaper than traditional bank transfers due to low network fees. This study focuses on the total costs of the process, including cash-in and cash-out.
What remains unknown
- Which specific jurisdictions and transfer corridors were covered by the study?
- Does the Bank of Italy propose specific solutions for optimizing fiat conversion costs?
- How would the results change if other types of stablecoins or networks were used?
Editorial context
Confidence: medium
The likely consequence will be a revision of economic models for money transfer services using stablecoins, with a focus on optimizing conversion processes. The next observable signal may be new regulatory initiatives or partnerships aimed at reducing costs at the crypto-fiat interface. The main uncertainty remains the possibility of the emergence of fully decentralized solutions for cash-in/cash-out capable of changing this dynamic.