LATAM Crypto Updates 2026: Argentina Blocks Digital Wallet Salaries, Brazil Eyes 1M Bitcoin Reserve, El Salvador Tokenizes $100M for SMEs

Latin America’s cryptocurrency scene continues to evolve rapidly in early 2026, with major policy shifts in Argentina, Brazil, and El Salvador highlighting the region’s mix of innovation, regulatory hurdles, and strategic adoption.

Recent developments underscore Latin America’s growing role as a hotspot for crypto experimentation, from tokenized investments to potential national Bitcoin holdings and fintech integration challenges.

Argentina’s Fintech Sector Hit by Labor Reform Reversal

In mid-February 2026, Argentina’s Senate passed President Javier Milei’s labor modernization bill, but only after stripping a key provision that would have allowed salary payments directly into digital wallets or fintech platforms. This decision, reached during negotiations to secure broader legislative support, maintains the legal requirement for wages to flow exclusively through traditional bank accounts.

The fintech community had welcomed the original clause as a breakthrough for financial inclusion. Platforms such as Mercado Pago, Ualá, Lemon, and Modo serve as primary financial gateways for millions, especially amid persistent economic pressures like high inflation and limited banking access—only about 47% of Argentines held formal bank accounts in recent surveys.

The removal favors established banks, despite public preference for payment flexibility shown in polls. It limits fintech growth by keeping salary inflows within the banking system, potentially reducing transaction volumes on digital platforms and slowing broader crypto-fiat integration in everyday finance.

Brazil Advances Bold Bitcoin Reserve and Tax Relief Proposal

Brazil’s Congress is reviewing an updated version of Bill 4501/2024, reintroduced in early February 2026 by Federal Deputy Luiz Gastão. The legislation proposes creating the Sovereign Strategic Bitcoin Reserve (RESBit), aiming to accumulate up to 1 million BTC over five years through gradual government purchases—potentially capped at 5% of foreign exchange reserves in earlier drafts but now expanded in ambition.

Key elements include:

• Full exemption from income taxes on Bitcoin and other crypto gains.
• Permission for federal tax payments in Bitcoin.
• Removal of mandatory transaction registration for brokers and investors.
• Secure storage in cold wallets managed jointly by the Ministry of Finance and Central Bank.
• Positioning Bitcoin as a strategic asset to potentially back the upcoming digital real (Drex).

If enacted, the plan could involve significant spending (estimates around $68 billion at current prices) and mark Brazil as a major state-level Bitcoin holder, enhancing diversification amid global trends.

El Salvador Launches $100 Million Tokenized Equity Push for SMEs

El Salvador advances its digital asset leadership through a new partnership between Corporación Infinito (COIN) and Stakiny, announced in February 2026. The collaboration targets channeling $100 million in foreign direct investment into local small and medium-sized enterprises (SMEs) during the year via regulated tokenized equity instruments.

Stakiny, seeking approval from the National Commission of Digital Assets (CNAD), provides the blockchain infrastructure on an EVM-compatible network. Features include on-chain registration of tokens linked to traditional shareholder agreements, real-time cap table tracking, automated dividend payouts, governance voting, and secondary market trading.

The platform emphasizes accessibility with mobile wallets featuring biometric security, bridging crypto-native and conventional investors. Antonio Arrué, COIN’s vice president, highlighted the initiative’s goal to connect global capital with Salvadoran businesses, fostering economic growth through compliant tokenization.

These updates reflect Latin America’s dynamic crypto environment: setbacks in financial access reforms, ambitious reserve strategies, and innovative investment models. The region attracts attention for balancing innovation with economic realities.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.