Lemon, one of Argentina’s largest crypto exchanges, has launched what it describes as the country’s first Bitcoin-backed Visa credit card. This innovative product offers users Argentine peso financing without requiring them to liquidate their Bitcoin (BTC) savings.
According to La Nación, a leading Argentine daily newspaper, customers must lock up 0.01 Bitcoin as collateral, which is approximately $960 at current prices. This collateral allows users to obtain an initial credit limit of 1 million pesos. The Bitcoin held as collateral serves as an immobilized guarantee, meaning it is not sold or converted into fiat currency.
Lemon has plans to expand the functionality of this product. Future enhancements will allow users to adjust their collateral and credit limits over time. Eventually, users will be able to settle dollar-denominated purchases directly using dollar-pegged stablecoins such as USDC or Tether (USDT).
From Banking Crises to Mattress Dollars
The introduction of this card reflects the long-standing distrust Argentines have in banks. This distrust is rooted in historical events such as repeated devaluations and the “corralito” deposit freeze in December 2001. This freeze significantly impacted savings, prompting many households to hold wealth in cash dollars rather than in peso accounts.
A Reuters report, referencing official data used in Argentina’s International Monetary Fund program, estimated that Argentines hold approximately $271 billion in undeclared cash dollars. This money is reportedly kept “in mattresses and overseas bank accounts,” effectively outside the formal financial system.
This trend of holding undeclared cash persists even after President Javier Milei’s “Fiscal Innocence” tax amnesty initiative. This initiative encouraged close to 300,000 savers to declare over $20 billion.
By enabling users to post Bitcoin as collateral for local credit lines, Lemon aims to transform a favored savings asset into practical day-to-day spending power. This approach allows savers to utilize their Bitcoin holdings without the need to sell their BTC or their stash of hard currency.
Crypto Rails Deepen in Latin America
The launch of this card also occurs as cryptocurrency infrastructure becomes increasingly integrated into Latin American finance. Data compiled from analytics platforms like Dune indicates that centralized exchanges in the region have experienced a significant growth in their transaction flows, increasing roughly ninefold over the past three years.
Exchange flows reached around $27 billion in 2024. Cumulative regional crypto activity has approached $1.5 trillion between 2022 and 2025. Major firms in the region, including Bitso, Mercado Bitcoin, and Lemon, are handling a growing share of remittances, hedging, and everyday payments.
This regional context provides Lemon with a ready-made user base that is already familiar with using digital assets for both savings and transactions.
Crypto-Collateralized Credit Goes Mainstream
Globally, crypto-collateralized credit is no longer a novel concept. Numerous platforms in the United States, Europe, and Brazil allow users to borrow against their Bitcoin or stablecoin holdings. Some fintech companies also offer cards that draw on crypto-backed credit lines.
Lemon's offering distinguishes itself by being explicitly positioned as a Bitcoin-guaranteed, peso-denominated revolving credit product. It is being issued into a financial environment that is highly dollarized and remains somewhat fragile.
Although inflation has recently cooled from triple-digit levels, it remains elevated by global standards, currently in the low 30% range. The enduring memories of past financial crises continue to influence saving behaviors among Argentines.