Monitor this situation.
Unsubscribe anytime.
[SITUATION] · [ACTIVE] · [BUSINESS]
2 clusters · 6 sources · 5 days · First seen · Last updated
Cross-border payment cost comparisons
Overview
Recent reports have examined the cost efficiencies of various methods for international money transfers. An analysis by Borderless.xyz suggests that stablecoin-funded remittances offer significant savings, particularly in emerging markets. The report claims a median fee of 1% for stablecoin transactions compared to a 6.36% average for traditional methods, representing an 84% cost reduction. In Sub-Saharan Africa and Latin America, stablecoin costs were notably lower than traditional benchmarks, with rapid settlement times noted in Brazil and Mexico.
However, research from the Bank for International Settlements (BIS) provides a different perspective on the competitive landscape. The BIS findings indicate that fintech money transfer operators (MTOs) are outperforming traditional retail bank wire transfers by reducing costs significantly. While stablecoins are viewed as a potential alternative, the BIS suggests their cost advantages are not guaranteed and depend on factors such as market liquidity, regulatory compliance, and the reliability of intermediaries.
Entities
World Bank · Bank for International Settlements · Borderless.xyz
Timeline
-
[BUSINESS] 3 sourcesFintech providers outperform banks and stablecoins in cross-border payment costs
A BIS study finds fintech money transfer operators offer significantly lower cross-border payment costs than traditional banks and stablecoins, which face liquidity and regulatory challenges.
-
[BUSINESS] 3 sourcesStablecoin remittances offer 84% cost savings over traditional transfers
A Borderless.xyz report shows stablecoin remittances are roughly 84% cheaper than traditional transfers, offering significant cost savings and faster settlement in emerging markets.
Sources
clickgratis.com.br · cointelegraph.com · news.yam.md · regtechafrica.com · thefutureofthings.com · tronweekly.com