Lemon launches Bitcoin-backed credit card in cash-hoarding Argentina
Summary
Crypto exchange Lemon has introduced a Bitcoin-backed Visa credit card in Argentina, allowing users to use BTC as collateral for peso credit lines, enabling them to access funds without selling their cryptocurrency.
Key Insights
How does the Bitcoin-backed Visa credit card from Lemon work?
Users lock Bitcoin as collateral in their Lemon account to receive a credit line in Argentine pesos, which can be spent anywhere Visa is accepted without selling the Bitcoin. For example, pledging 0.01 BTC (about $900) provides a credit limit of around 1 million pesos, with no bank account or credit history required.
What is 'cash-hoarding' in the context of Argentina?
In Argentina, high inflation exceeding 100% annually and currency devaluation have led many people to hoard cash or turn to Bitcoin as a store of value, while facing banking restrictions and limited credit access. This card helps by providing peso liquidity using BTC collateral amid these economic challenges.