Argentina's Senate passed President Javier Milei's labor reform bill 42-30 early Thursday after more than 13 hours of debate - but not before stripping a provision that would have let workers deposit salaries into digital wallets.
The removal handed a clear win to the country's banking lobby at the expense of fintech platforms, including cryptocurrency wallet Lemon.
The bill, which still needs lower house approval, cuts severance costs for employers, expands essential-service strike restrictions, and reclassifies platform workers as independent contractors.
Protests outside Congress in Buenos Aires turned violent, with demonstrators throwing Molotov cocktails and police responding with tear gas.
What Was Removed
Article 35 of the original reform would have allowed Argentine workers, for the first time, to choose between traditional bank accounts and digital wallets for salary deposits. Argentine law currently requires all wages to flow through bank accounts.
Milei's coalition cut the provision during pre-vote negotiations to secure broader Senate support, according to Reuters.
Banking associations had sent letters to key senators arguing that digital wallets lack equivalent regulation and could pose "systemic risks."
The Argentine Fintech Chamber and wallet providers contested that claim. All payment service providers are regulated and supervised by the Central Bank of Argentina, Lemon chief financial officer Maximiliano Raimondi told BeInCrypto.
Read also: BitGo Expands Staking And Custody Deal With 21Shares Weeks After Rocky IPO Debut
Why It Matters for Crypto
The decision directly affects crypto-native wallets like Lemon and Ualá that serve millions of Argentines as their primary financial tool. Roughly 75% of all transfers in the country already move through CVU accounts - the virtual account system used by digital wallets - according to the Argentine Fintech Chamber.
A consulting firm Isonomía study found 9 in 10 Argentines wanted the freedom to choose where their pay goes. Argentina ranks among the top cryptocurrency adoption countries globally, driven by decades of financial instability and the 2001 "corralito" deposit freeze that destroyed public trust in banks.
A 2022 Central Bank survey found only 47% of Argentines held a traditional bank account. Platforms like Mercado Pago, Lemon, and Ualá filled that gap with free accounts, higher yields, and direct cryptocurrency access.
The bill moves to the Chamber of Deputies, where the ruling coalition wants a vote before Feb. 27. Whether the wallet provision gets reinserted is unclear. For now, millions of Argentine workers will continue receiving pay in bank accounts they use mainly as transfer points - routing funds to wallets on their own.
Read next: Why Did Cardano's Founder Wear A McDonald's Uniform To Announce A Major Partnership