In a recent study, researchers examining the economics of cross-border payments discovered that traditional fiat currency conversion costs and existing payment infrastructure account for most differences in transaction expenses—far outweighing blockchain fees. The Bank of Italy research found that while stablecoins promise efficient settlements, users still face significant hurdles from legacy financial systems.
Cointelegraph reported on the findings, noting that settlement time variations across different platforms stem more from intermediary banking arrangements than decentralized network costs. This challenges common assumptions about cryptocurrency’s cost advantages in remittance scenarios.
The conclusion: stablecoin infrastructure improvements alone won’t transform cross-border payments without addressing broader payment ecosystem dynamics and conversion friction points at traditional banking endpoints.
