Argentine crypto platform Lemon has unveiled the country’s first Bitcoin-backed Visa credit card, opening a new way for users to access credit without selling their crypto. The launch marks a major move toward blending digital assets with everyday financial tools in Argentina.
The new card lets users borrow Argentine pesos while keeping their Bitcoin holdings intact. Instead of converting BTC into cash at checkout, users lock part of their Bitcoin inside the Lemon app. That crypto then secures a peso-based credit line accepted anywhere Visa operates.
How the Bitcoin-Backed Credit Card Works
Lemon designed the card as a true credit product, not a prepaid option. Users pledge Bitcoin as collateral and spend pesos as they would with any standard credit card. Furthermore, this structure helps users avoid selling Bitcoin and potentially triggering capital gains taxes.
Key features of the card include:
- Bitcoin used as collateral without forced liquidation
- Peso-denominated credit accepted by all Visa merchants
- Real-time monitoring of Bitcoin prices
- No traditional credit checks required
The system adjusts collateral levels automatically as Bitcoin prices move. Therefore, the credit line stays backed at all times. Lemon only liquidates Bitcoin if collateral thresholds fall too low.
Why This Matters in Argentina
Argentina has faced years of high inflation and currency instability. As a result, many residents already rely on cryptocurrencies as a store of value. Lemon’s card offers a practical solution for daily spending while holding onto Bitcoin for the long term.
For example, a user can pay rent or groceries with pesos while their Bitcoin remains untouched. This setup appeals to people who lack access to bank credit or prefer alternatives to the traditional system.
Crypto-backed lending has gained traction across Latin America. Industry observers see Lemon’s launch as part of a wider shift toward real-world crypto use. Moreover, integrating this model into a Visa credit card sets a new benchmark for fintech innovation in the region.
While regulators continue to watch crypto lending closely, Lemon’s Bitcoin-backed card could reshape how Argentines think about credit. If adoption grows, similar products may soon appear across neighboring markets.
