According to La Nación, one of Argentina’s leading newspapers, Lemon, the country’s second-largest cryptocurrency exchange, has launched the first Visa credit card backed by Bitcoin.
The new product allows users to access loans in Argentine pesos by using their Bitcoin assets as collateral without selling them. This step is considered a significant innovation towards the more active use of cryptocurrencies in daily financial life.
Developed by Lemon, this credit card targets individuals who lack access to traditional banking systems or a credit history. Users can make purchases by using their Bitcoin as collateral, without needing a bank account or going through classic credit assessment processes. The aim is to transform long-term Bitcoin savings from being solely an investment tool into a financial instrument usable for daily expenses.
In Argentina, high inflation, capital controls, and distrust in the banking system have rapidly increased the use of cryptocurrencies in recent years. Bitcoin and other digital assets have become prominent as a store of value for many Argentinians, and Lemon’s new Visa card aims to expand the practical uses of these assets. Purchases made with the card are in pesos, while Bitcoin collateral is held in the background, eliminating the need for users to sell BTC.
Company officials state that with this product, they aim to increase financial inclusion and integrate the crypto ecosystem into daily life. According to experts, Bitcoin-backed credit cards may gain increasing popularity as an alternative financial model, especially in countries with high inflation and limited access to banking. Lemon’s move is seen as the beginning of a new era in the development of crypto-based financial products in Argentina.
*This is not investment advice.
