The Central Bank has once again intervened in the dispute between banks and virtual banknotes, this time by repealing a 2023 rule that required Payment Service Providers (PSPs) to pass on the returns generated by the balances to their clients. Through Communication A 8038, the Central Bank revoked a standard from September of the previous year, Communication A 7825, which had mandated that virtual wallets must pay their clients for the money they leave deposited in the accounts, even if the user does not invest in any instrument. This allowed those with demand balances to receive a profit without taking any risks.
The repeal of Communication A 7825 aims to strengthen smaller digital wallets (PSPCP) and promote financial inclusion by allowing PSPCPs to transfer the remuneration of demand account balances. However, this measure has sparked controversy, with some in the banking sector claiming that it allows certain companies to bypass regulations that banks are required to comply with.
The Central Bank’s decision comes after a series of regulatory changes in the fintech sector. In December 2021, all virtual wallets were required to deposit 100% of their funds with the Central Bank, a move that was met with resistance. In September of the following year, fintech companies were allowed to allocate up to 45% of their reserves to the investment of a particular Treasury bond. Then, in August of the same year, the Central Bank mandated that profits from investments in peso-denominated securities be transferred to clients – a rule that was repealed last Thursday.
The Argentine Fintech Chamber welcomed the Central Bank’s decision to repeal Communication A 7825, stating that it encourages collaboration between fintechs and virtual wallets, and promotes a more integrated financial industry. They clarified that the decision does not impact