Argentina Gets Its First Bitcoin Credit Card

Core Insights - Lemon, a leading crypto platform in Argentina, has launched the country's first Bitcoin-backed Visa credit card, allowing users to access credit in Argentine pesos while retaining their Bitcoin holdings as collateral [1][3] - The initiative addresses the economic challenges in Argentina, where high inflation and currency devaluation have led many to adopt cryptocurrency as a survival tool [2] Product Details - Users can deposit 0.01 BTC to access up to 1 million Argentine pesos (approximately $700), with Lemon holding the Bitcoin as security until the balance is repaid [3] - Marcelo Cavazzoli, Lemon's CEO, highlighted the product's simplicity and the importance of Bitcoin as a store of value in the new digital economy [3] Economic Context - Argentina has faced severe economic instability, with hyperinflation exceeding 200% annually in 2023-2024, although recent measures have reduced it to around 31.5% year-over-year by December 2025 [4] - Monthly inflation remains high, with a 2.8% increase in December 2025, eroding the purchasing power of the peso and increasing distrust in traditional banking [4] Historical Factors - Historical banking crises, such as the 2001 "corralito," have led to a culture of cash hoarding, with an estimated $271 billion in undeclared U.S. dollars held outside the formal system [5] - The shift towards hard assets like Bitcoin has been significant, with Latin America experiencing approximately $1.5 trillion in crypto activity from 2022-2025, and Argentina ranking second in per-capita usage [5]