Argentinian cryptocurrency exchange Lemon has launched a Visa credit card collateralized by Bitcoin, local news La Nación reported Wednesday.
Lemon is the second-largest crypto exchange in Argentina, serving over 5.5 million users. The new Bitcoin-backed Visa credit card allows access to financing in pesos without having to sell or convert their BTC holdings.
“We created a simple way to access credit in pesos using Bitcoin as collateral, without needing a credit history,” said Marcelo Cavazzoli, founder and CEO of Lemon, in an official statement.
The rollout is the first stage in the product development, with simple mechanisms and a fixed amount.
How Does Lemon BTC-Backed Credit Card Work?
Per the exchange website, the user deposits 0.01 bitcoin as collateral – currently over $900 in value – and gets a credit card in pesos with a pre-assigned limit of $1,000,000. This way, Bitcoin is only held as collateral, and is neither sold nor converted.
“Bitcoin is the best store of value created in the history of humanity and the fundamental piece for the new digital economy,” Cavazzoli added.
Further, in the next phase of the project, users will be able to configure their own backup and credit limit. Additionally, Lemon is developing a solution to allow dollar-denominated purchases to be paid directly in digital dollars such as USDT and USDC stablecoins, the announcement read.
User Benefits
Lemon highlighted that users of the credit card will have commission-free purchases of digital dollars, Bitcoin, Ethereum and over 30 cryptos. Besides, exclusive benefits include early access to new features, newsletter with market info and portfolio summary.
In the initial three months, the card’s maintenance will be waived by Rootstock, the company noted, following which, 7,500 pesos per month ($5) will be waived for users who purchase over $150 worth of cryptocurrency per month.
“In Argentina, Bitcoin is the most held asset by Lemon users, above the crypto dollar and the peso,” it added. “With this card, Lemon seeks to transform those savings into an everyday tool.”
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