Argentinian Crypto App Lemon Introduces Bitcoin-Backed Credit Card

Summary:
Lemon, Argentina's second-largest cryptocurrency exchange, has launched a new Bitcoin-backed Visa credit card, enabling users to borrow in pesos without selling their Bitcoin. This innovative product aims to facilitate easier access to credit while leveraging Bitcoin as collateral.

Key Takeaways

Lemon, a prominent Argentinian crypto exchange, has released a Bitcoin-collateralized Visa credit card.
Users can borrow in pesos without converting their Bitcoin holdings.
The card offers a pre-assigned credit limit based on Bitcoin collateral.
Benefits include commission-free crypto transactions and waived maintenance fees for qualifying purchases.

Lemon Bitcoin credit card

Introduction to Lemon's Credit Card

Lemon, the second-largest cryptocurrency exchange in Argentina with more than 5.5 million users, has announced the launch of a new Visa credit card backed by Bitcoin. According to local news outlet La Nación, this initiative allows users to access financing in Argentine pesos without needing to sell or convert their Bitcoin (BTC) assets.

“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. This launch marks the first phase of product development, featuring uncomplicated mechanisms and a fixed credit amount.

Understanding the Bitcoin-Backed Credit Card

How It Works

As detailed on the exchange's website, users will need to deposit 0.01 Bitcoin as collateral, which currently holds a value of over $900. In return, they receive a pesos credit card with a pre-assigned limit of $1,000,000. In this structure, Bitcoin serves purely as collateral, remaining unsold and unconverted.

“Bitcoin is the best store of value created in the history of humanity and the fundamental piece for the new digital economy,” Cavazzoli stated.

Looking ahead, Lemon plans to refine the product by allowing users to set their own backup and credit limits. The company is also working on a feature that will enable dollar-denominated purchases to be made directly using stablecoins like USDT and USDC.

Advantages for Users

What Users Can Expect

Lemon has emphasized the advantages of using this new credit card, which provides commission-free purchases of digital dollars, Bitcoin, Ethereum, and over 30 other cryptocurrencies. Additional exclusive benefits include early access to new features and a newsletter featuring market insights and portfolio summaries.

During the first three months of launching the card, maintenance fees will be covered by Rootstock. After this period, a fee of 7,500 pesos (approximately $5) will be waived for users who purchase over $150 worth of cryptocurrency each month.

“In Argentina, Bitcoin is the most held asset among Lemon users, surpassing both the crypto dollar and peso,” the company stated. “With this card, Lemon aims to turn those savings into an everyday financial tool.”