Argentina’s crypto exchange Lemon has unveiled what it calls the country’s first Bitcoin-backed Visa credit card, a product designed to let users spend Argentine pesos without selling their Bitcoin. The launch reflects both Argentina’s deep distrust of traditional banking and the growing role of crypto in everyday finance.
The card allows customers to lock Bitcoin as collateral and access a peso-denominated credit line, effectively turning long-term BTC savings into usable spending power. Rather than converting Bitcoin into cash, Lemon holds it as an immobilized guarantee, preserving exposure to BTC price movements.
How Lemon’s Bitcoin-Backed Credit Card Works
According to Argentine newspaper La Nación, users must deposit a minimum of 0.01 BTC (worth roughly $960 at current prices) to unlock an initial credit limit of 1 million Argentine pesos. The Bitcoin remains locked as collateral and is not sold or exchanged for fiat.
Lemon plans to expand the product over time, allowing customers to adjust both their collateral and credit limits dynamically. The company also aims to support settlement of dollar-denominated purchases using stablecoins such as USDC and USDT, offering protection from peso volatility while keeping transactions within the crypto ecosystem.
The card is issued on the Visa network, making it usable for everyday purchases just like a traditional credit card, but backed by digital assets rather than bank deposits.
Why the Card Matters in Argentina’s Financial Landscape
Argentina’s financial history explains why a Bitcoin-backed credit product resonates strongly with local users. Decades of inflation, repeated currency devaluations, and the infamous 2001 “corralito” banking freeze left many Argentines wary of keeping money in banks.
As a result, households have long stored wealth in U.S. dollar cash, often hidden at home or held abroad. A Reuters report citing official data linked to Argentina’s IMF program estimates that Argentines hold around $271 billion in undeclared cash dollars outside the formal financial system. Even recent tax amnesty efforts under President Javier Milei have only partially drawn those funds back into the open.
By allowing Bitcoin to serve as collateral for peso credit, Lemon is targeting savers who already distrust banks but want liquidity without selling hard assets. The product also arrives as crypto usage across Latin America accelerates. Regional exchange flows have grown sharply over the past three years, with Argentina emerging as one of the most active markets for crypto-based savings, payments, and remittances.
Globally, crypto-collateralized loans are no longer experimental. Platforms in the U.S., Europe, and Brazil already offer borrowing against Bitcoin or stablecoins. What sets Lemon apart is its focus on peso-denominated revolving credit in a highly dollarized, still-fragile economy where inflation, though lower than before, remains elevated.
