BIS paper: Stablecoins can reduce cross-border settlement frictions, but remain constrained by on/off-ramp costs and liquidity limitations.

PANews October 20 news: The Bank for International Settlements (BIS) has released Working Paper No. 1385, comparing the cross-border payment costs of traditional banks, fintech remittance providers, and stablecoins. The paper notes that stablecoins can complete cross-border transfers through networks such as Ethereum, Solana, and Tron, reducing reliance on correspondent banks and SWIFT; stablecoin exchange prices for major currencies can approach wholesale foreign exchange rates, and on-chain transfer fees are relatively low. However, the complete "fiat—stablecoin—fiat" process still involves trading, withdrawal, and on/off-ramp fees, and stablecoins restructure intermediation rather than eliminate it. Insufficient market depth also limits the cost advantage for large-value payments, while the advantage in some emerging markets is related to capital controls and demand for the U.S. dollar.