Lemon, a leading cryptocurrency exchange in Argentina with over 5 million users, has announced the launch of the country's first Bitcoin-backed Visa credit card. The card allows users to obtain credit in Argentine pesos without selling their BTC holdings. By depositing 0.01 BTC (worth roughly $700 at current prices) as collateral, users can access a credit line of up to 1 million Argentine pesos (approximately $700).
How It Works
The card is issued by Visa and aims to expand financial options for Bitcoin holders, letting them retain exposure to the digital asset while enjoying the convenience of a traditional credit card. In an initial phase, the collateral ratio and spending limit are fixed. In a second phase, users will be able to customize the collateral amount and credit limit, making the card a more versatile savings and spending tool.
No Fees for the First Three Months
To encourage early adoption, Lemon has partnered with Rootstock, a protocol that enables building decentralized applications on top of Bitcoin. Rootstock will subsidize maintenance fees for the first three months. After that, a flat monthly fee of $5 will be charged. This collaboration highlights the growing synergy between Bitcoin L2 solutions and real-world financial products.
CEO's Perspective
Marcelo Cavazzoli, CEO of Lemon, stated: “We created a simple way to access credit in pesos with Bitcoin as collateral, without the need for a credit history. Bitcoin is the best store of value ever created in the history of mankind and the fundamental building block for the new digital economy.” He further noted that Bitcoin is by far the most popular digital asset for savings in Argentina, surpassing stablecoins and the peso itself, which makes it the ideal collateral for such a product.
Market Context
Argentina has been grappling with high inflation and currency devaluation for years, driving strong demand for hard assets like Bitcoin. Lemon, which has previously raised $20 million to bankroll its Latam expansion, is well-positioned to capitalize on this trend. The launch of the Bitcoin-backed credit card not only addresses local financial needs but also sets a precedent for crypto-collateralized lending in emerging markets worldwide.
Future Plans
Lemon plans to roll out additional Bitcoin-based financial services, including savings accounts and payment tools. This card represents a significant step toward integrating Bitcoin into everyday finance, offering a blueprint for other exchanges and regions considering similar products.