Lemon Launches First Bitcoin-Backed Credit Card System in Argentina

Lemon Introduces Bitcoin-Backed Visa Credit Card in Argentina

Lemon, a prominent currency exchange agency in Argentina, has launched what is considered the country's first Bitcoin-backed Visa credit card. This card allows users to lock up BTC as collateral to access credit lines in pesos, eliminating the need to sell their coins. According to the Argentine newspaper La Nación, customers must lock in 0.01 Bitcoin (approximately $960 at current prices) to secure an initial credit limit of 1 million pesos, with the Bitcoin held as frozen collateral.

Lemon plans to expand the product to allow users to adjust their collateral and credit limits over time, considering the potential to make purchases in dollars directly from dollar-pegged stablecoins like USDC or Tether.

A Complicated Economic Context

The card's launch occurs amidst long-standing distrust among Argentinians towards banks, stemmed from repeated devaluations and deposit freezes since December 2001. A Reuters report estimates that Argentinians hold around $271 billion in undeclared cash, hidden "in mattresses and offshore bank accounts," far outside the formal financial system. Even following President Javier Milei's tax amnesty initiative, which encouraged almost 300,000 savers to declare over $20 billion, cash stocks remain significant.

The Impact of Cryptocurrencies in Latin America

The Lemon card arrives at a time when cryptocurrencies are becoming increasingly embedded in the financial system of Latin America. Data indicates that centralized exchanges in the region have grown almost ninefold over the past three years, with cumulative crypto activity nearing $1.5 trillion between 2022 and 2025. This backdrop offers Lemon a user base already familiarized with utilizing digital assets for savings and transactions.

Bitcoin as Collateral for Loans

Globally, crypto-backed loans are no longer a novelty. Various platforms allow users to borrow against positions of Bitcoin or stablecoins. However, Lemon's offering stands out by positioning itself as a revolving credit product, guaranteed by Bitcoin, in a fragile, highly dollarized banking environment. While inflation has recently decreased from triple-digit levels, it remains high, and memories of past crises continue to influence the savings behavior of Argentinians.