As the Argentine government prepares for a significant Senate debate on Labor Reform, discussions are heating up about the inclusion of a provision that would permit salaries to be deposited into virtual wallets. Currently, such transactions are exclusively managed by financial institutions, and there are concerns that the banks are exerting pressure to remove this provision from the discussion altogether. This article, which is part of a broader reform introduced last December, aims to modernize the existing Labor Contract Law, which mandates that wages must be deposited in a conventional bank account.

The financial sector, particularly traditional banks and fintech companies, has been vocal in their opposition to the inclusion of this article in the reform. They argue that allowing salaries to be deposited into virtual wallets would significantly alter the current banking landscape, where over 10 million salary accounts are managed. Public and private lobbying has intensified in recent days, indicating that banks fear losing their monopoly over salary deposits, and have sought to influence policymakers ahead of the critical debate.

The outcome of this discussion will have wide-ranging implications for workers in Argentina, who could gain increased flexibility and options regarding how they receive their salaries. However, the financial institutions argue that it may lead to potential risks and complications. If the article is excluded from the final legislation, it would underscore the influence of the banking sector on policy decisions and raise questions about the balance between innovation in financial technology and traditional banking practices.