Overview
The digital economy in Argentina has been steadily growing, driven by a tech-savvy population and a robust entrepreneurial spirit, particularly in Buenos Aires, which is often considered the Silicon Valley of South America. Twelve Argentine technology companies have reached the stage of ‘unicorn,’ startups valued at over $1 billion, (MercadoLibre, Despegar, Globant, OLX, Auth0, Aleph, Mural, Tiendanube, Bitfarms, Technisys, Ualá and Vercel), while there are many Argentine technology companies on the verge of achieving the same status.
The state of digital in Argentina in 2024
According to the Argentine Chamber of Internet (CABASE), there were over 40 million internet users in Argentina at the start of 2024, when internet penetration stood at 88.4 percent. Argentina was home to over 31 million social media users in January 2024, equating to 68 percent of the total population. In 2024, the 4G network covered almost 98 percent of the country, the internet penetration was at 93 percent, and the average broadband connection speed was 50.40k kbit/s.
Data Privacy
The Argentine Data Protection Authority (AAIP) is charged with implementing Argentina’s Personal Data Protection Act. In 2023, the government of Argentina introduced a bill to amend the current policy for personal data protection and has taken steps to adopt European standards. This bill has not been discussed in Congress yet. The USG has been proactively reaching out to the Argentine Agency for Access to Public Information to promote acceptance of the Global Cross-Border Privacy Rules (CBPR) system.
Cybersecurity
Please see the “Information & Communications Technology and Cybersecurity” section above for further details.
Artificial intelligence
In Argentina, AI and machine learning adoption is expanding across several industries including agriculture, manufacturing, healthcare, and the public sector including citizen services and the judiciary.
Recently, the Argentine Government created an agency named Artificial Intelligence Unit Applied to Security (UIAAS), under the Ministry of Security, to use artificial intelligence in the prevention and investigation of cybercrimes.
Fintech
Argentina’s fintech sector has emerged as a resilient, innovative force in the context of local and global economic challenges. Despite rampant domestic inflation and global geopolitical turmoil, the sector has demonstrated growth and continues to mature.
Argentina’s fintech ecosystem is home to over 340 firms. According to the latest Finnovista report, the sector’s distribution highlights a balanced concentration in key verticals: both lending and payments and remittances lead with an equal share of 17 percent each. Close behind are wealth management and enterprise financial management, capturing about 15 percent each. Enterprise technologies for financial institutions and insurance tech also mark their presence with 12 percent and 7 percent respectively, while the remaining verticals together make up over 17 percent of the ecosystem.
As economic conditions in Argentina remain challenging, demand for fintech services that safeguard wealth against inflation and offer yield-generating investment opportunities are anticipated to continue growing.
Cryptocurrency
Argentina ranks 15th globally and 2nd in Latin America for cryptocurrency adoption, with Bitcoin and USD-backed stablecoins being the most popular. The government recently approved the official recognition of Bitcoin in legally binding contracts, and many expect the industry to rise in popularity as more citizens use cryptocurrencies to avoid increasing inflation and conduct business transactions. Cryptocurrency revenue in Argentina is currently valued at $193 million and is projected to reach $343 million by 2028, with an annual growth rate of over 15 percent. The number of cryptocurrency users is expected to grow from 3 million in 2024 to 3.7 million by 2028.
Market Challenges
Regulatory environment
Various aspects of the digital economy are subject to regulation in Argentina and companies entering the market must understand how to comply with associated requirements. Several examples are highlighted below.
Data protection
Argentina’s Data Protection Law requires that all databases be registered with the Agency of Access to Information and that the consent of the owners (individuals and companies) of the personal data be procured for purposes of gathering, assigning, and transferring personal data. The owners of private data have the right to access their data, as well as to request that the data be rectified, updated, erased, or kept confidential by the database. Requests of this nature must be complied with within five business days. Although the Data Protection Law does not prevent sharing information with potential buyers, it is strongly advised that confidentiality agreements be signed to protect said information.
USG has been proactively reaching out to the Argentine Agency for Access to Public Information to promote data protection best practices and the embracing of the Global Cross-Border Privacy Rules (CBPR) system.
AI regulation
In Argentina, the general background legislation that applies to and contains specific provisions pertaining to AI includes: the Argentine Constitution, the Civil and Commercial Code, the Personal Data Protection Act, the Intellectual Property Act, the Labor Act, the Consumer Protection Act, and the Criminal Code.
No Argentine laws have been amended to specifically address AI technology; however, recent bills have contemplated AI issues in their provisions, which have been influenced by the European Union’s regulations on the matter. Such bills mainly seek to provide guiding principles for the use of AI, including transparency, explainability, security, privacy, data protection, human supervision, responsibility, and accountability.
The Secretariat for Innovation, Science, and Technology has a National Directorate for Artificial Intelligence while the Agency for Access to Public Information enforces data protection regulations.
Fintech regulation
There is no fintech regulator in Argentina, although, depending on the activities conducted by the target company, the regulations of the Central Bank of Argentina, the Argentine Securities Exchange Commission (Comisión Nacional de Valores) and the Argentine Anti-Money Laundering Authority (Unidad de Información Financiera) may apply.
Recently, the Milei administration pledged to reduce regulations on financial technologies and provide greater freedom to startups. Since then, the Central Bank of Argentina has taken the lead in developing regulations for the fintech sector, particularly in areas such as digital payments, e-money, and virtual wallets. The Secretariat of Finance also plays a crucial role in shaping the fintech regulatory environment, particularly in matters related to taxation, anti-money laundering, and counter-terrorism financing (AML/CTF) regulations.
Market Opportunities
As Argentina embraces digital transformation, U.S. companies have a unique chance to participate in this dynamic sector, which spans e-commerce, fintech, education technologies, agriculture technologies, and more.
This year is poised to be a period of exploration and innovation for the industry, with a focus on embedded finance, blockchain applications, and AI-enhanced credit scoring models. Supported by a conducive regulatory environment and one of the highest fintech adoption rates in Latin America, Argentina is well-positioned for sustained digital economic transformation.
AI and machine learning will continue to present opportunities in several sectors of the economy such as agriculture, mining, energy, industrial production, and service providers. According to a survey by the Argentine Fintech Chamber, 70 percent of technology-based financial services companies in the country are open to implementing open banking or embedded finance. This transition demands a nuanced approach to managing information flow, ensuring robust data protection, and maintaining stringent cybersecurity measures.
Last year, Argentina decided to allocate the full band of 6 Ghz to unlicensed technologies such as Wi-Fi. This has created opportunities for U.S. companies that provide solutions related to broadband connectivity and advanced applications such as IoT, advanced manufacturing, augmented and virtual reality, smart cities, and other innovations across several industries such as energy, healthcare, education, engineering, media and entertainment, and more.