LATAM crypto news: Argentina fintech faces setback; Brazil weighs Bitcoin reserve

The most noteworthy cryptocurrency developments in the region this week came from Argentina, Brazil, and El Salvador.

El Salvador is planning a $100 million tokenised investment program for local SMEs, Brazil is considering a bill to eliminate crypto taxes and establish a strategic Bitcoin reserve, and Argentina's fintech industry suffered a blow when lawmakers revoked a proposal that would have permitted salaries to be paid into digital wallets.

Together, these tales demonstrate how governments and businesses in Latin America are experimenting with new models for reserves, investments, and daily financial access, making the region a crucial arena for crypto policy and innovation.

Fintech setback in Argentina’s salary deposit reform

A proposed labour reform that would have enabled employees to receive their salaries directly in digital wallets for the first time was initially embraced by Argentina's fintech industry.

But ultimately, lawmakers eliminated the clause, which was generally interpreted as supporting traditional banks.

Even if surveys indicate that a significant majority of Argentines prefer the right to choose where their paychecks are deposited, the party of President Javier Milei agreed to remove the clause during discussions to gain wider support for the law.

Employees are required by law to receive their pay through conventional bank accounts.

Nevertheless, the use of digital wallets has increased recently, in part because financial services are more difficult to use.

Only 47% of Argentines have a bank account, according to a 2022 central bank survey.

This indicates a long-standing mistrust of the institution following incidents like the 2001 "corralito," ongoing inflation, and frequent limitations on accessing funds.

Fintech platforms have thereby made financial access more widely available, with many users turning to apps like Mercado Pago, Modo, Ualá, and Lemon as their main gateway to official digital finance.

Brazil considers a strategic Bitcoin reserve and crypto tax exemption

A report presented to the Chamber of Deputies Economic Development Committee in Brazil has the potential to drastically alter the nation's stance on Bitcoin.

The plan calls for removing taxes on cryptocurrency gains and establishing a Sovereign Strategic Bitcoin Reserve (RESBit).

The new language proposed by Congressman Luiz Gastão, rapporteur of Bill 4,501/2024, will modify the regulation of the cryptocurrency industry, including modifications to oversight and reporting guidelines.

The plan would permit the federal government to buy Bitcoin over time, up to a maximum of 5% of the country's foreign exchange holdings.

The Ministry of Finance and the Central Bank would work together to handle the assets, which would be kept in cold wallets for further security.

Additionally, the law repeals an existing rule requiring brokers and investors to register all cryptocurrency transactions and permits the payment of federal taxes in Bitcoin.

Bitcoin is positioned as a strategic reserve that might underpin Brazil's digital currency, the Drex, and it also offers a complete income-tax exemption on gains from Bitcoin and other digital assets.

Strategic alliance aims to tokenize $100 million for Salvadoran SMEs

In order to direct $100 million in foreign direct investment into small and medium-sized businesses (SMEs) in El Salvador by 2026, Corporación Infinito (COIN) and Stakiny formed a strategic alliance.

Through an integrated infrastructure that blends financial structuring, regulatory compliance, and blockchain technology, the effort intends to employ regulated tokenised equity instruments to link local businesses with global finance.

The project aims to draw in institutional investors and foreign money seeking to use digital investment methods to contribute to the expansion of Salvadoran firms, according to Antonio Arrué, vice president of COIN.

Stakiny, a platform requesting permission from the National Commission of Digital Assets to tokenise equity in private enterprises, will supply the technological backbone.

In order to provide real-time cap table management, dividend distribution, governance events, and secondary trading, the model will connect conventional shareholder agreements with digital tokens registered on-chain.

To enable tokenised investing for both crypto-native and conventional investors, the platform is made to run on an EVM-compatible network and be accessed via a mobile wallet with biometric authentication.