Argentina’s second-largest cryptocurrency exchange Lemon has launched a Visa credit card backed by Bitcoin collateral, marking the first product of its kind in the country. The new card allows users to access credit in Argentine pesos without selling their Bitcoin (BTC) or needing a traditional bank account or credit history, transforming long-term crypto savings into an everyday financial tool.
What the Card Offers
According to La Nación, Lemon’s Bitcoin-backed credit card enables users to receive financing in pesos by using their BTC as collateral — without liquidating their crypto holdings. In the card’s initial stage:
- A user must deposit 0.01 Bitcoin (approximately US$900 at current prices) as collateral.
- In exchange, the platform issues a Visa credit card with a peso-denominated credit limit — up to around 1,000,000 pesos — which can be used at merchants worldwide that accept Visa.
- The Bitcoin remains immobilized as a guarantee, but is not sold as part of the process, allowing the holder to retain potential future upside.
Lemon’s CEO, Marcelo Cavazzoli, said the product provides a simple way to use Bitcoin as a gateway to peso credit, even without any bank account or credit score, citing Bitcoin’s role as a long-term store of value in the digital economy.
How It Works
Lemon’s Bitcoin-backed Visa card operates under a relatively straightforward collateral model:
- BTC Deposit: The cardholder deposits a fixed amount of BTC into Lemon’s custody.
- Credit Issuance: Based on the collateral value, Lemon issues a credit limit denominated in pesos.
- Purchases: The Visa card can be used for everyday purchases locally and internationally at any Visa-accepting merchant.
- No BTC Sale: Crucially, the Bitcoin remains held as collateral — users continue owning it and it is not liquidated to fund purchases.
In upcoming product phases, Lemon plans to let users tailor collateral amounts and credit limits, and even explore features that would allow some payments (especially dollar-denominated purchases) to be settled via digital dollar tokens (like USDC or USDT) directly from the collateral pool.
Early Cardholder Benefits and Costs
The launch offer includes some early benefits, such as waivers on maintenance fees during initial months, with costs applying thereafter — potentially offset by activity in the platform’s broader crypto ecosystem. Lemon also integrates the card with its mobile app’s broader tools for crypto purchasing, Lightning Network deposit, and QR-based cashback features for regular transactions.
What It Means for Argentina’s Crypto Adoption
Argentina has one of the highest adoption rates for Bitcoin and crypto assets in Latin America, partly driven by high inflation and limited access to traditional financial services. Lemon’s new credit card aims to break down barriers that have kept crypto savings isolated from everyday financial life, enabling users to:
- Retain BTC as a long-term hedge even while drawing short-term credit in pesos.
- Access financing without formal banking history, addressing a large unbanked or underbanked population.
- Use crypto savings for consumption or investment in a regulated, globally accepted payment network — Visa.
By bridging crypto savings and mainstream credit, Lemon’s product may deepen financial inclusion and catalyze broader adoption of digital assets in everyday commerce.
Sector Implications
Lemon’s BTC-backed Visa card reflects a broader shift in fintech and crypto integration, particularly in regions where traditional banking penetration is low. Financial observers are watching how similar collateralized crypto credit products perform, and how regulators respond as these products extend beyond trading and investment into credit markets.
Importantly, the model differs from crypto debit or prepaid Visa cards that automatically convert crypto into fiat at the time of purchase — instead offering credit access against a crypto reserve, preserving the holder’s exposure to price appreciation.
Bottom Line: Lemon’s launch of Argentina’s first Bitcoin collateral-backed Visa credit card marks a significant step in integrating crypto assets with everyday financial tools — enabling users to tap into peso credit without selling their Bitcoin or needing a traditional bank account. This product may help bridge long-term crypto savings and daily financial utility in a high-inflation environment.
