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The case for stablecoins as a lower-cost remittance rail has a serious institutional challenge.
Researchers at the Bank of Italy found no consistent cost advantage for stablecoin-based transfers, concluding that fiat conversion costs and payment infrastructure, not blockchain fees, account for most of the variation in both cost and settlement time.
What the Bank of Italy found The finding cuts at a foundational assumption.
Advocates have long pointed to blockchain fee structures as the mechanism that would make stablecoin remittances structurally cheaper than the correspondent banking routes they aim to replace.
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