Stablecoin Remittances Lag Wise in 4 of 7 Corridges Despite Lower Global Average

Woofun AI reports that a Bank of Italy study concludes stablecoin-based remittances lack a systematic cost or speed advantage over traditional payment channels, primarily due to fiat on- and off-ramp frictions. The research focused on USDC transfers to determine if blockchain technology offers genuine efficiency gains.

The methodology involved testing 200 USDC remittances across 10 bidirectional payment corridors linking Italy with Brazil, Argentina, Japan, the United Arab Emirates, and South Africa.

Woofun AI data shows that exchange fees and currency conversion constituted the majority of expenses, whereas blockchain transaction fees represented a negligible share. Total costs for these stablecoin transfers ranged from 0.3% to nearly 9%, varying significantly by corridor.

Performance metrics indicated that transfers settled in less than 20 minutes where instant payment systems were available, but took one to two business days otherwise. While stablecoin transfers were cheaper than the global average remittance cost of 6.65% in most corridors, they were less expensive than Wise in only three of seven comparable corridors. This benchmarking highlights that lower global averages do not guarantee competitiveness against specialized fintech providers.

Structurally, the study argues that investment in domestic instant payment infrastructure is critical, as settlement times depend heavily on the quality of local payment rails. Regulatory design also proved pivotal; prohibitionist regimes pushed users toward offshore platforms, while restrictive frameworks increased operational complexity. This context emerges as the European Union implements Markets in Crypto-Assets (MiCA) and the United States enacts the GENIUS Act, governing a stablecoin market that has grown to $307 billion, up 16% over the past year.

The findings suggest that true efficiency gains will only materialize when stablecoins no longer require conversion back into fiat currency. Until regulatory design aligns with seamless local integration, retail users will continue to face significant operational complexity.