Lemon Launches Visa Card in Argentina Using Bitcoin as Collateral

TLDR

• Lemon has launched Argentina’s first Bitcoin-backed Visa credit card, allowing users to access peso financing.
• Customers can lock 0.01 Bitcoin as collateral without selling or converting their BTC to obtain a credit limit of 1 million pesos.
• The Bitcoin collateral remains immobilized, giving users flexibility to spend without liquidating their crypto holdings.
• Lemon plans to expand the product by allowing users to adjust collateral and credit limits over time.
• The card aims to serve Argentinians who prefer digital assets over traditional banking in a highly dollarized economy.

Lemon has introduced a new Visa credit card in Argentina, using Bitcoin as collateral for peso-based credit lines. Customers receive 1 million Argentine pesos in credit by locking 0.01 BTC without converting or selling their Bitcoin. The product targets users seeking access to local financing while maintaining their crypto holdings.

Bitcoin-Backed Credit Card Launch

Lemon, Argentina’s second-largest crypto exchange, now offers a Bitcoin-backed Visa credit card with no need for a credit history. Users must lock 0.01 BTC, valued at over $900, to access a credit limit of 1 million pesos. The locked Bitcoin acts only as collateral and remains untouched.

CEO Marcelo Cavazzoli confirmed the card allows Argentines to borrow in pesos without liquidating their BTC reserves. “We created a simple way to access credit in pesos using Bitcoin as collateral,” he said. The launch aims to provide spending flexibility during inflationary pressure.

The card marks the first product of its kind in the country, offering revolving credit without selling crypto assets. It arrives during ongoing inflation and financial instability, where demand for hard assets remains high. Lemon plans to let users customize limits and collateral amounts in future updates.

Lemon Expands Bitcoin Card with USDC Payments

Lemon plans to enhance the card by allowing payments in digital dollars such as USDC and USDT for international use. This would support dollar-denominated purchases using stablecoins, further expanding the card’s utility. The second development phase will enable users to adjust collateral and credit settings.

Argentina’s banking trust issues date back to 2001’s deposit freeze, which still affects local financial behavior. As a result, many households store wealth outside banks in U.S. dollars or Bitcoin. Lemon aims to offer a bridge between crypto savings and local credit without forcing conversions.

Lemon’s website confirms the initial rollout uses fixed terms with limited configurations. However, the company expects to release flexible features in the coming months. The company continues to grow its user base of over 5.5 million people across Argentina.

Crypto and Credit in Argentina’s Fragile Economy

Centralized crypto exchanges in Latin America, including Lemon, processed $27 billion in flows in 2024. These exchanges play a growing role in payments, remittances, and hedging against currency devaluation. Argentina remains one of the top markets for crypto adoption due to its volatile economy.

Lemon’s card enters a dollarized market where inflation has fallen but remains above 30% annually. The move offers crypto holders a peso-based spending option without reducing crypto exposure. It also reflects a broader shift as users seek new tools to manage savings and access credit.

Lemon positions this product to serve Argentines who prefer digital assets over traditional banking. Cavazzoli stated, “Bitcoin is the best store of value created in the history of humanity.” He emphasized that the card gives users more financial freedom without losing control of their savings.

President Javier Milei’s recent tax amnesty prompted $20 billion in declarations, though an estimated $271 billion remains undeclared. Many still hold dollars abroad or in cash at home, bypassing formal systems. Lemon aims to capture part of that base by linking crypto to everyday finance.

Crypto-collateralized lending is already used in the U.S., Europe, and Brazil, but Lemon is the first in Argentina. The focus remains on enabling peso-based credit in a crypto-driven model rather than crypto-to-fiat sales. The product meets demand from users wanting liquidity without compromising savings.

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