Argentina’s second-largest cryptocurrency exchange, Lemon, has introduced a groundbreaking Visa credit card collateralized by Bitcoin, as reported by local news outlet La Nación. This innovative product allows users to access financing in pesos without having to sell or convert their Bitcoin holdings, providing a unique solution for cryptocurrency enthusiasts in the region.
Lemon serves over 5.5 million users, and the new Bitcoin-backed Visa credit card is designed to provide a simple way to access credit in pesos using Bitcoin as collateral, without the need for a credit history. According to Marcelo Cavazzoli, founder and CEO of Lemon, “We created a simple way to access credit in pesos using Bitcoin as collateral, without needing a credit history.” This development is a significant step forward in the adoption of cryptocurrencies in everyday transactions.
How Does Lemon BTC-Backed Credit Card Work?
According to the exchange website, users can deposit 0.01 bitcoin as collateral, currently valued at over $900, and receive a credit card in pesos with a pre-assigned limit of $1,000,000. This mechanism allows Bitcoin to be held as collateral, without being sold or converted. Cavazzoli emphasized the importance of Bitcoin, stating, “Bitcoin is the best store of value created in the history of humanity and the fundamental piece for the new digital economy.”
The initial phase of the project features a fixed amount and simple mechanisms, with plans to introduce more advanced features in the next phase. Users will be able to configure their own backup and credit limit, and Lemon is developing a solution to enable dollar-denominated purchases to be paid directly in digital dollars, such as USDT and USDC stablecoins.
User Benefits
Lemon highlighted the benefits of the credit card, including commission-free purchases of digital dollars, Bitcoin, Ethereum, and over 30 other cryptocurrencies. Exclusive benefits for users include early access to new features, a newsletter with market information and portfolio summary, and waived maintenance fees for the first three months, courtesy of Rootstock. After the initial period, users who purchase over $150 worth of cryptocurrency per month will have their monthly maintenance fees of 7,500 pesos ($5) waived.
The introduction of the Bitcoin-backed credit card is a significant development in the Argentine market, where Bitcoin is the most held asset by Lemon users, surpassing the crypto dollar and the peso. As Cavazzoli noted, “With this card, Lemon seeks to transform those savings into an everyday tool.” This innovative product has the potential to increase the adoption of cryptocurrencies in everyday transactions and provide users with more flexible and convenient payment options.
For more information on this development, please visit the original source: https://cryptonews.com/news/argentinian-crypto-app-lemon-launches-bitcoin-backed-credit-card/
