Cost of Sending 200 USDC Ranges from 0.30% to Nearly 9%

The cost of sending stablecoins has been found to vary from 0.30% to nearly 9% of the amount sent. On July 30, the Italian bank announced the results of an experiment involving the transfer of 200 USDC between Italy and ten routes connecting Argentina, Brazil, South Africa, the United Arab Emirates, and Japan. The results indicated that stablecoins are not necessarily cheaper than traditional remittance methods. The costs include not only blockchain network fees but also exchange rate margins, on-ramp and off-ramp fees, and local bank transfer costs. The World Bank explained that when comparing remittance services, transaction fees, exchange rates, and processing speeds should also be considered. Processing speeds vary by route; routes with instant payment systems can complete transfers within 20 minutes, while regular bank transfers take 1 to 2 business days. When sending USDC from Italy to Brazil, the cost was 2.70%, while sending from Brazil to Italy was 2.21%. Under the same conditions, Wise's fees were 2.20% for transfers from Italy to Brazil and 4.68% to 4.89% for transfers from Brazil to Italy. The recipient does not immediately convert the amount received into local currency or cash, and the usability of stablecoins depends on the speed of transfer and the way the recipient holds assets. Circle advises individual users to trade USDC through exchanges or digital wallets.

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