Bitcoin Collateral Meets Everyday Spending: Lemon Introduces BTC-Backed Credit Card in Argentina

Argentina’s fast-growing crypto platform Lemon has launched a first-of-its-kind Bitcoin-backed Visa credit card, allowing users to access peso credit without selling their Bitcoin holdings. The rollout reflects rising demand for alternative financial tools in a country long shaped by inflation and banking mistrust.

Lemon says users must lock up 0.01 Bitcoin as collateral, worth about $900 at current rates — to receive a credit line of about 1 million Argentine pesos. Unlike typical crypto debit cards that sell assets at the point of purchase, this new card leaves Bitcoin untouched while giving spending power via a traditional Visa network.

Lemon’s founder, Marcelo Cavazzoli, said the card was designed to let Argentines access peso financing without needing a traditional bank account or credit history. This could help more people participate in formal credit markets and make everyday purchases while still holding onto crypto.

Bridging Crypto Savings and Real-World Finance Amid Economic Strain

Argentina has a long history of currency instability. Repeated peso devaluations and past banking crises have driven many residents to save in hard assets like U.S. dollars or Bitcoin. Recent estimates suggest Argentines hold hundreds of billions in undeclared cash dollars outside the formal system, underscoring deep public distrust in banks.

In this climate, Bitcoin has emerged not just as an investment but as a store of value and financial tool. Lemon’s credit product aims to turn that value into real-world liquidity without forcing users to liquidate their crypto. Analysts say the product blends traditional payment rails with crypto’s asset base, a hybrid model that could appeal in economies with high inflation and limited credit access.

Lemon plans future upgrades that would let users adjust collateral and credit limits over time and possibly pay for international or dollar-denominated purchases with stablecoins like USDC or USDT.That expansion could make the card more versatile and deepen its integration with global digital dollar systems.

The product launch arrives as other crypto-linked cards, such as prepaid solutions from Binance and Mastercard, test demand in Argentina’s market, highlighting the region as a hotbed for crypto payment innovation.