Skip to main content
Back to news
Adoption

Bank of Italy Says Stablecoins Don't Actually Save Money on Remittances — Here's What That Means for Crypto's Biggest Promise

(63 days ago) · 1 source · Summarized by CryptoBipto

A study by the Bank of Italy found that stablecoins do not consistently offer cost advantages over traditional methods for sending money across borders. The findings challenge one of the most frequently cited use cases for stablecoins — cheaper and faster international remittances. The research suggests that while stablecoins may offer speed benefits, hidden fees and conversion costs can erode any savings.

WHY IT MATTERS

Imagine you work in another country and want to send money home to your family. Traditional services like Western Union charge fees for this. Stablecoins — digital currencies pegged to the dollar or euro — have been promoted as a cheaper alternative, like sending an email instead of mailing a letter. But Italy's central bank studied this and found that when you add up all the costs of converting your regular money into stablecoins, sending them, and converting them back, you don't consistently save money. Think of it like a toll road that advertises no tolls but charges you at the entrance and exit — the total cost can end up being similar. This matters because 'cheaper remittances' has been one of crypto's biggest selling points, and this study questions whether that promise holds up in practice.

One of the strongest narratives in the crypto space has been that stablecoins can dramatically reduce the cost of sending money internationally, especially for migrant workers sending funds home.

Read the full analysis with a CryptoBipto membership

Members can read the full analysis of every story, not just the headline.

Get started

SOURCES

  • Source

RELATED

StablecoinsRemittancesCentral Bank ResearchEuropean RegulationCross-Border Payments