Argentina Congress Strips Workers’ Right to Choose Digital Wallet Deposits

Argentine Congress removed a key provision from a proposed labor reform that would have allowed workers to deposit their salaries directly into fintech-run digital wallets instead of mandatory traditional bank accounts. This exclusion, agreed upon by President Javier Milei's party to secure broader support, was seen as a victory for traditional banking interests, despite polls showing that nearly 75% of Argentines prefer the freedom to choose their deposit method.

Digital wallet adoption has soared in Argentina due to decades of financial instability, high inflation, and public distrust in banks, leading many unbanked individuals to use platforms like Mercado Pago and Lemon. Fintech advocates argue that Payment Service Providers (PSPs) are regulated by the Central Bank of Argentina (BCRA) and that the exclusion maintains an outdated obligation that forces users to immediately transfer funds from banks to fintechs seeking better returns and lower costs.

Banking associations had lobbied against the change, citing concerns over inadequate regulation, potential systemic risks, and financial exclusion, though fintech groups countered these claims. Ultimately, the banking sector prevailed, and the provision was cut before a Senate vote to avoid straining relations with banks and improve the bill's overall chances of approval.

(Source：BeInCrypto)