Argentina Removes Digital Wallet Salary Option Amid Banking Lobby Pressure
Argentina's Congress has eliminated the provision allowing workers to receive salaries through digital wallets, mandating traditional bank deposits instead. The decision follows intense lobbying by banking groups, who argued digital wallets lack equivalent regulatory safeguards.
Despite widespread adoption—75% of Argentines use digital wallets daily—the labor reform bill promoted by President Javier Milei's administration sided with banks. Fintech firms countered that payment providers operate under central bank supervision, but their arguments failed to sway legislators.
This MOVE highlights the tension between disruptive fintech solutions and entrenched financial institutions in emerging markets. With 90% of workers reportedly preferring wallet deposits, the policy shift may fuel further distrust in Argentina's banking system while dampening crypto adoption momentum.
