Key Insights
- Lemon Exchange lets users access peso credit without selling Bitcoin or using banks.
- The Visa card uses fixed Bitcoin collateral to unlock everyday spending power.
- Argentina’s growing crypto adoption supports demand for Bitcoin-backed financial products..
Lemon Exchange has launched the first Visa credit card in Argentina based on Bitcoin, that focuses on daily purchases without selling BTC. The product enables users to lock Bitcoin as security, while unlocking credit lines that are in peso denominations. As a result, holders are able to save long term at the expense of meeting day to day expenses. Its launch indicates a surge in the demand of crypto-based financial instruments in Argentina.
How the Bitcoin-backed credit card works
First, to access, customers need to deposit 0.01 Bitcoin as a Collateral which is approximately $900 at present prices. They are in turn issued a Visa credit card that has a set limit of up to 1,000,000 pesos. Notably, the Bitcoin is not manipulated and does not change to local currency. Rather, it just supports the line of credit.
At this stage, the system uses a fixed structure with defined limits. However, the company confirmed that future updates will allow flexible collateral and credit adjustments. Meanwhile, the card does not require a bank account or credit history. Therefore, it opens credit access to users excluded from traditional banking.
Moreover, the card supports everyday purchases across the Visa network. Users spend pesos while Bitcoin stays locked in reserve. Consequently, the product turns crypto savings into usable financial liquidity. According to the company, the goal focuses on usability rather than speculation.
Fees, benefits, and crypto purchasing options
The launch also includes several incentives for early users. Cardholders receive commission-free purchases of Bitcoin, Ethereum, digital dollars, and over 30 cryptocurrencies. However, these benefits apply only to purchases, not trading or selling activity. Additionally, users gain early access to new app features and direct Telegram support.
For the first three months after launch, Rootstock will cover the card’s maintenance fee. After that period, the fee will cost about 7,500 pesos per month. Still, Lemon will waive the fee for users who buy more than $150 in crypto monthly. Therefore, frequent users can avoid ongoing costs.
Users can buy Bitcoin starting from 100 pesos through bank transfers using CBU or CVU. They can also deposit BTC from external wallets. Supported networks include Lightning, Bitcoin mainnet, Rootstock, and BNB Chain. Furthermore, existing users can earn Bitcoin rewards when paying with pesos through QR codes or the Visa card.
Why Argentina drives Bitcoin-backed credit demand
Argentina’s financial history strongly influences the product’s appeal. Repeated peso devaluations and the 2001 “corralito” deposit freeze damaged trust in banks. As a result, households shifted toward holding U.S. dollars outside the formal system. More recently, many turned to crypto as a store of value.
According to official IMF-related estimates, a total of $271 billion undeclared dollars is held by Argentines. Such funds are kept in cash or in offshore accounts. Many savers avoid banks in spite of a new tax amnesty that stimulated declarations. Thus, crypto-secured credit is another spending bridge.
Lemon reports that Bitcoin now ranks as the most held savings asset among its users. It surpasses both the peso and dollar-backed instruments. CEO Marcelo Cavazzoli said users view Bitcoin as long-term financial security. Consequently, the company aims to convert savings into spending power without forced liquidation.
In addition to Argentina, crypto-backed lending is currently being deployed in the U.S., Europe, and Brazil. This product however is unique in that it is a revolving credit, but in peso. It is coming into a dollarized economy only with weak banking trust.
Meanwhile, the use of crypto in Argentina keeps increasing. The number of citizens who actively use digital assets is estimated to be about 20%. The regulatory attitudes have also become better than they were in December 2023.
