Banks in Argentina are requesting amendments to a bill that would enable salaries to be paid via virtual wallets, raising concerns over Article 35 as the Congress debate approaches.
The Argentine Banking Association (ABA) has formally requested modifications to a specific article in a pending labor reform bill that would permit the payment of salaries through virtual wallet platforms such as MercadoPago. This comes ahead of critical debates scheduled to begin next Wednesday in the Senate, highlighting the ongoing tension between traditional banks and digital payment systems.
As digital finance continues to rise, banks are expressing concerns about the implications of allowing employers to pay wages through these alternative payment services. The ABA's letter emphasizes the necessity for nuanced regulatory considerations, particularly concerning Article 35 of the proposed legislation, which they believe could undermine the stability and reliability of salary payments and worker protections.
This situation exemplifies the broader struggle between conventional banking institutions and the increasing influence of fintech companies in Argentina. The outcome of the legislative discussions may not only affect how salaries can be disbursed but could also shape the competitive landscape of the financial services sector in the country.
