New Financial Product Offers Peso Credit Lines Against Bitcoin Collateral
Cointelegraph reports that Lemon has introduced Argentina's first Bitcoin-backed Visa credit card. The Argentine crypto exchange launched the product on January 15, 2026. Users can now lock up Bitcoin as collateral to access peso credit lines.
The card requires customers to deposit 0.01 BTC as collateral, worth approximately $960. This locked Bitcoin provides an initial credit limit of 1 million pesos. The collateral remains immobilized rather than being sold or converted to fiat currency.
Lemon plans to expand the product's features over time. Future updates will allow users to adjust both collateral amounts and credit limits. The exchange also intends to enable dollar-denominated purchases settled directly in stablecoins like USDC or USDT.
Meeting Demand in a Crisis Economy
Argentina's economic history drives demand for crypto-based financial products. The country experienced repeated currency devaluations and a 2001 deposit freeze that destroyed savings. Chainalysis data shows Argentines hold about $271 billion in undeclared cash dollars outside the formal banking system.
President Javier Milei's tax amnesty initiative pushed 300,000 savers to declare over $20 billion. However, most Argentines continue avoiding traditional banks. The peso lost 51.6% of its value in the year leading to July 2023. Inflation cooled from triple digits but remains in the low-30% range.
Lemon's product allows Argentines to use Bitcoin savings for daily spending without liquidating holdings. This addresses both currency instability and banking distrust. Bitcoin offers nations a practical tool to bypass international payment restrictions and accelerate digital transformation.
Latin American crypto exchange flows grew ninefold over three years. Regional activity reached $27 billion in 2024. Cumulative crypto transactions approached $1.5 trillion between 2022 and 2025.
Global Trend Reaches Latin America
Bitcoin-backed credit products are expanding worldwide. CCN reports five major US banks now offer or pilot Bitcoin-backed credit services. JPMorgan Chase, BNY Mellon, Wells Fargo, Bank of America, and Citibank provide institutional clients with crypto-collateralized loans.
These traditional institutions let clients borrow cash while holding Bitcoin positions. The approach avoids triggering taxable sales events. Most platforms maintain loan-to-value ratios around 50% to protect against Bitcoin volatility.
Lemon's offering differs from standard crypto loans in key ways. The product functions as peso-denominated revolving credit rather than a one-time loan. It targets retail consumers in a highly dollarized economy rather than institutional investors.
Argentina ranks second in Latin America for crypto transaction volume at $93.9 billion. The country leads the region in adoption rate at 19.8% of the population. Stablecoins represent over half of all exchange purchases using Argentine pesos.
The Bitcoin-backed card arrives as Argentina modernizes its payment infrastructure. Some merchants now accept Brazil's PIX instant payment system to avoid peso depreciation risks. Crypto provides an alternative path for both savings preservation and transaction settlement.
Traditional banks remain fragile despite recent policy reforms. Memories of past crises continue shaping Argentine financial behavior. Bitcoin-collateralized products offer a bridge between crypto holdings and everyday peso spending needs.