In Argentina, the fintech sector is pushing back against recent legislative decisions that exclude virtual wallets from being used for salary payments. This move comes as the Chamber of Deputies seeks to amend the Labor Reform law that had previously passed in the Senate. The PRO party, particularly under the leadership of Cristian Ritondo, argues that excluding virtual wallets represents a limitation on individual freedom rather than a necessary regulatory measure.

Last week, during the drafting of the bill, Payment Service Providers (PSPs) were notably removed from Article 35, which now limits salary payments only to banking entities and official savings institutions. This decision by the Senators was influenced by a significant campaign from the banking sector and was backed by the economic team led by Luis Caputo. They argue that banks provide greater guarantees for salary payments and that salaries are considered essential for sustenance.

The ongoing debate raises important questions about the role of fintech in the future of financial transactions in the country. As digital payment methods become increasingly popular, the position taken by lawmakers could impact how salaries are managed and delivered in the future, potentially stifling innovation in the fintech space if virtual wallets are continuously sidelined from essential financial practices.