The crypto exchange from Argentina, Lemon, has rolled out a Visa credit card bonded by Bitcoin, as reported by local news La Nacion on January 14. Lemon has positioned itself as the second-biggest crypto exchange in the country, overseeing 5.5 million users.
The new Bitcoin-supported Visa credit card permits access to financing in pesos without having to sell or trade their BTC holdings. The founder and the chief executive officer of Lemon, Marcelo Cavazzoli, stated officially that they made a simple way to access credit in pesos using Bitcoin as collateral, without requiring a credit history.
How will the card work?
The launch is the initial stage in the product development, with simple mechanisms and a fixed amount. According to the exchange website, the user deposits 0.01 bitcoin as collateral, having over $900 in value at present, and gets a credit card in pesos with a pre-assigned limit of $1,000,000. Just like that, Bitcoin is only held as collateral and is neither sold nor converted.
The CEO also mentioned that Bitcoin is the best store of value made in the history of humanity and the fundamental piece for the new digital economy. Moreover, in the upcoming phase of the project, users will be capable of configuring their own backup and credit limit.
Adding more to this, Lemon is making a solution to permit dollar-denominated purchases to be paid in digital dollars like USDT and USDC stablecoins, as per the announcement. Lemon mentioned that users of the credit card will have commission-free buying of digital dollars, Bitcoin, Ethereum and over 30 cryptos.
Apart from sole benefits, they include early access to new features, a newsletter with market info, and a portfolio summary. In the first three months, the maintenance of the card will be renounced for users who buy more than $150 worth of cryptocurrency per month.
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