Stablecoins such as $USDT and $USDC could make cross-border payments faster and cheaper by reducing some of the friction built into traditional international transfers, according to the International Monetary Fund.
However, the IMF has not conducted a definitive fee comparison showing that stablecoins are always cheaper than bank payments. Instead, it says stablecoins have the potential to lower costs while creating additional financial and policy risks.
The difference matters because the final cost of sending $USDT or $USDC extends beyond the blockchain transaction itself. Users may still pay exchange fees, network charges, conversion spreads, and on- or off-ramp costs before the recipient receives spendable local currency.
$USDT, $USDC Could Reduce Cross-Border Payment Friction
Traditional international payments often move through correspondent banking networks, where multiple institutions may participate before the funds reach the recipient. According to the IMF, cross-border transactions remain too costly and slow in many cases, limiting economic participation for households, businesses, and affected countries.
Stablecoins offer a different structure. $USDT and $USDC can move between blockchain wallets around the clock, with transfers settling in seconds or minutes depending on the network.
That structure can reduce reliance on multiple banking intermediaries and remove delays linked to banking hours, weekends, and separate clearing systems. The IMF said stablecoins show particular potential to make large-value cross-border payments cheaper and faster. However, that assessment implies possible efficiency gains rather than a universal cost advantage.
Stablecoin Transfers Still Carry Several Costs
A low blockchain transaction fee does not necessarily represent the full price paid by a sender. Users first need to convert fiat currency into $USDT or $USDC, which may incur an exchange fee and a spread between the buying and selling prices. They then pay the relevant blockchain network fee when transferring the stablecoin.
The recipient may incur additional costs when converting the stablecoin back into local currency. Off-ramp providers may charge service fees, while conversion spreads or local stablecoin premiums can further affect the final amount received.
As a result, stablecoin costs depend heavily on the blockchain, exchange, liquidity conditions, and fiat conversion channels involved.
IMF Sees Wider Risks Behind Cheaper Payments
The IMF also cautioned that faster and cheaper transfers could make the global financial system more “fluid,” allowing financial risks to move more quickly across borders. In emerging markets, wider stablecoin adoption could encourage currency substitution, weaken capital controls, and increase capital-flow and exchange-rate volatility.
Stablecoins could also weaken monetary policy transmission if households increasingly move savings from domestic currencies into dollar-linked assets.
The IMF further identified risks involving tax evasion and bank disintermediation. If deposits migrate from banks to stablecoins, banks could lose a source of funding that supports lending to households and businesses.
Related: Can $USDC Catch Up? Stablecoin Market Heats Up as Tether Holds the Top Spot
