Stablecoin Payments Are Fast. But They Have a Cost Problem

A Bank of Italy experiment found that moving $200 in stablecoins across ten international payment routes cost between about 60 cents and nearly $18, with buying and cashing out the tokens responsible for much of the expense and blockchain transfers only a small share. BVNK, a stablecoin infrastructure provider acquired by Mastercard, surveyed freelancers, gig workers and marketplace sellers and found they received roughly 35% of their income through stablecoins. At TOKEN2049, RedotPay corporate affairs head Taylor Bossung said buying and cashing out, known as on-ramping and off-ramping, remain too expensive. BIS research also examines how conversion and withdrawal costs affect stablecoins’ competitiveness against banks and fintech services.