Workers in Argentina: The Struggle for Digital Wallet Freedom

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In the land of tango and asados, where the sun shines fiercely and the politics even more so, Argentine fintech groups once clutched their dreams of a brave new world. A world where workers could, for the first time, toss their salaries into the digital wallets they admired from afar. Alas, the benevolent lawmakers, in their infinite wisdom, snatched that possibility away faster than a vendor selling churros at a street fair, leaving the traditional banking interests to bask in the warmth of their cozy, old-world embrace.

As the negotiations unfolded, like a soap opera with more twists than a winding Patagonian road, President Javier Milei’s party decided to play it safe. They struck an agreement to exclude the much-anticipated article that would allow Argentines to choose their salary deposits, despite polls indicating that an overwhelming sea of citizens yearned for that very freedom. It seems democracy takes a backseat when the banks are at the wheel.

Distrust In Banks Drives Wallet Adoption

Now, let’s not kid ourselves-Argentine law insists that salaries must flow into traditional bank accounts, but the reality is that digital wallets have surged like a river after a heavy rain. Why, you ask? Well, it turns out that many folks don’t trust banks any more than they trust a cat near a fish bowl. A peek at a 2022 Central Bank survey revealed that only 47% of Argentines had the good fortune of owning a bank account, a gap neatly tied to decades of financial shenanigans.

From the infamous “corralito” deposit freeze back in 2001 to the unrelenting inflation that makes one’s head spin, public trust in banks has plummeted faster than a miscalculated tango step. And so, in response to this crisis of confidence, fintech-driven digital wallets emerged like a knight in shining armor, offering a glimmer of hope to those cut off from the financial system.

En el mundo, las billeteras virtuales se usan principalmente para pagos y, en segundo lugar, para crédito, con una baja incidencia de saldos transaccionales significativos en moneda fiat, que suelen permanecer en cuentas bancarias tradicionales.

Argentina es una excepción: el…

– Federico Dominguez (@fededomin) February 10, 2026

Now, platforms like Mercado Pago, Modo, Ualá, and Lemon have become the darlings of the digital landscape, gaining traction faster than a soccer ball on a muddy pitch. Many who lack access to traditional banks now rely on these apps as their first taste of the formal digital financial system-quite the leap, indeed!

So, you can imagine the enthusiasm when fintech leaders saw the provision that would have allowed Argentines to deposit their salaries directly into these wallets. But, just like that last slice of pizza at a party, it was swiftly taken off the table before anyone could even blink.

”The exclusion of Article 35 from the labor reform eliminated the possibility for Argentinians to freely choose where to receive their salary. In practice, the obligation to channel salaries through traditional banks was maintained, following strong pressure from the sector.

However, citizens have already demonstrated their preference: nearly 75% of transfers in Argentina are made through CVUs, used by digital wallets. Millions of people receive their pay in banks only because the regulations require it, and then transfer their funds to fintechs in search of better products, lower costs, and higher returns,” Maximiliano Raimondi, CFO of Lemon told BeInCrypto.

Political Trade Off Favors Banks

Meanwhile, banking associations, like persistent flies at a picnic, renewed their lobbying efforts with letters to key senators, outlining how salary deposits into digital wallets would bring doom upon the nation. They argued that these wallets were akin to wild horses, running free and lacking the regulation necessary to keep them in check, potentially leading to chaos in the financial realm.

“They do not have a regulatory, prudential or supervisory framework equivalent to that of banks and their approval would generate legal, financial, asset and systemic risks that would directly affect workers and the functioning of the financial system,” said Banco Provincia, a leading Argentine bank, in a statement.

But the fintech folks weren’t about to take that lying down. They argued back, waving their flags high, asserting that all Payment Service Providers (PSPs) are under the watchful eye of the Central Bank of Argentina. “Digital wallets were the gateway to financial services for millions of people who were able to open a virtual account easily and free of charge, and access better financial solutions,” declared Lemon’s CFO, Maximiliano Raimondi, sounding more like a knight championing a cause than a mere accountant.

Surveys by consulting firms revealed that a staggering 9 out of 10 Argentines wanted the option to choose where their salaries resided. This desire surged among independent workers and those toiling in the informal sector. And as if that weren’t enough, 75% of Argentines were already using digital wallets daily-quite the revolution brewing amidst the bureaucratic fog!

Hoy millones de personas usan cuentas digitales todos los días. 📊 El 75% de las transferencias ya pasa por CVU. El salario es una de las pocas operaciones masivas donde esa libertad todavía no existe.

Desde la Cámara Argentina Fintech sostenemos que este debate no trata de…

– Cámara Argentina Fintech (@CamaraFintechAr) February 8, 2026

In the end, the banks flexed their muscles, and before the bill could dance its way to a Senate vote, the provision was yanked. Reports indicated that the government pulled it to avoid ruffling feathers and to improve the bill’s chances of survival-because heaven forbid we rock the boat when the banks are steering!

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2026-02-12 23:50