Coinbase CEO Advocates for Zero Fee Remittances via Stablecoins

Remittance fees have been a long-standing issue for migrant workers and families worldwide. The estimated $905 billion in global remittances in 2024-2025 comes with a significant cost, averaging 6.36% in transaction fees. This translates to around $57.55 billion spent on fees alone in the past year.

Traditional banking institutions remain the most expensive service providers in this sector, charging an average of 14.99%. In contrast, mobile operators and credit/debit cards offer more affordable options at 5.58% and 4.39%, respectively. However, Armstrong argues that these fees could potentially drop to zero with the use of stablecoins.

Stablecoins are cryptocurrencies pegged 1:1 to stable assets like the U.S. dollar, designed to avoid volatility. With a total market capitalization of $320.45 billion, they have become increasingly popular for cross-border moves due to their round-the-clock availability, including weekends and outside banking hours.