Bank of Italy Finds Stablecoin Transfers Struggle to Beat Traditional Remittance Costs

The Bank of Italy (Banca d'Italia) disclosed the results of a mystery‑shopping test aimed at measuring whether stablecoins deliver a cost advantage over traditional cross‑border money transfers.

Inside the Mystery‑Shopping Experiment: Design and Methodology

The test involved 10 distinct Europe‑Asia routes, sending an identical €5,000 amount via both stablecoin (e.g., USDC, USDT) and conventional bank wire. A third‑party observer recorded processing time, FX rate, and total fees for each method.

Unexpected Cost Realities: Fees, Spreads, and Banking Rails

■Transaction fee: Stablecoin 2.5%, bank 1.0%

■FX spread: Stablecoin 0.8%, bank 0.3%

■Banking‑rail surcharge: Stablecoin 0.5%, bank 0.2%

■Average total cost: Stablecoin 3.8%, bank 1.5%

These figures reveal that the theoretical low‑fee promise of stablecoins is eroded by real‑world liquidity and bridge costs.

Market Players React: Strategic Re‑Assessment

Fintech firms and crypto exchanges are urging tighter liquidity agreements, while traditional banks accelerate low‑cost digital channel roll‑outs. Digital‑only banks such as Revolut, Wise, and N26 are steering clear of positioning stablecoins as a cheaper alternative in their marketing.

Regulator’s Takeaways and Policy Recommendations

Banca d'Italia highlighted a transparency gap in the stablecoin ecosystem and recommended:

■Licensing of bridge providers

■Strengthening consumer protection mechanisms

■Standardising fee and spread disclosures

The central bank also signalled intent to coordinate a supervisory framework with the European Central Bank (ECB).

Cem Talu – Blockchain researcher and crypto investor: The findings underscore that stablecoins are not yet the “cost miracle” many tout; infrastructure and liquidity frictions inflate their real‑world pricing. Investors should evaluate not just token price but the economic efficiency of the underlying network. Regulatory action could pave the way for a more competitive, transparent ecosystem, yet traditional banks’ digital transformation will remain a decisive advantage in the interim.