Argentina's Senate Removes Digital Wallet Salary Option from Labor Reform Bill

Senate Vote Alters Labor Reform

Argentina's Senate has removed a key provision from President Javier Milei's sweeping labor reform bill that would have permitted employees to receive their salaries directly into digital wallets. The clause, initially part of a broader effort to modernize the country's labor laws, was eliminated during intense negotiations to secure wider support for the legislation. The Senate passed the reform bill early Thursday, February 13, 2026, by a vote of 42 to 30, sending it to the lower house for final approval.

Banking Lobby's Influence

The removal of the digital wallet provision is widely seen as a victory for Argentina's traditional banking sector, which actively lobbied against the measure. Banking associations argued that digital wallets lacked the equivalent regulatory framework of traditional banks and could introduce 'systemic risks' to the financial system. They also contended that allowing salary deposits into fintech platforms would 'drain liquidity' from the banking system, potentially impacting their ability to lend. Lawmakers reportedly made this concession to garner the necessary votes for the overall reform package.

Fintech Industry Expresses Disappointment

The decision has been met with significant disappointment from Argentina's burgeoning fintech industry. Companies such as Lemon, Ualá, and Mercado Pago, along with the Argentine Fintech Chamber, criticized the move, asserting that digital wallets are already regulated and supervised by the Central Bank of Argentina. Fintech representatives highlighted that these platforms serve as a crucial entry point to financial services for millions of Argentines, many of whom have limited access to traditional banking or distrust the conventional financial system due to past economic instability. A study by Isonomía indicated that 9 out of 10 Argentines desired the freedom to choose where their salaries are deposited, with approximately 75% already utilizing digital wallets daily for various transactions.

Broader Labor Reform Context

The labor reform bill is a central component of President Milei's economic agenda, aiming to overhaul labor laws that have largely remained unchanged since the 1970s. Beyond the digital wallet clause, the legislation introduces several significant changes, including:

• Easing hiring regulations
• Modifying vacation time systems
• Allowing for an extension of the standard workday from eight to up to 12 hours
• Introducing new limitations on the right to strike

The government argues these measures will reduce bureaucracy, stimulate investment, and boost formal employment.