Stablecoin Remittances Prove Significantly Cheaper Than Traditional Transfers
- Sending a $200 remittance via stablecoins costs a median of $2 (1%), compared to $12.72 (6.36%) for traditional methods.
- Stablecoin remittances are approximately 84% cheaper than their traditional counterparts, based on third-quarter pricing data.
- In Sub-Saharan Africa, stablecoin transfers cost about 2.9%, while traditional transfers are at 8.46%.
- Business payments of $10,000 using stablecoins can cost as low as $26, compared to $135-$150 for traditional bank wires.
- Payouts through stablecoin networks can settle in minutes, with Brazil’s PIX network averaging two minutes for transactions.
The report highlights the growing adoption of stablecoins for remittances, particularly in emerging markets where transaction costs remain high with traditional methods. Completion rates for these transactions vary by network but show promising reliability.
Overall, stablecoin remittances offer significant savings and faster settlement times compared to traditional transfers, exemplified by the median cost difference of $10.72 on a $200 transfer.(Source)
