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Local newspaper La Nacion reported on Wednesday that Argentinian cryptocurrency exchange Limon has secured a Visa loan backed by Bitcoin.
Lemon is the second largest cryptocurrency exchange in Argentina, serving more than 5.5 million users. The new Bitcoin-backed Visa credit card makes it possible to get money in pesos without the need to sell or transfer Bitcoins to banks.
“We have created an easy way to get a loan in pesos using Bitcoin as collateral, without the need for a credit history,” said Marcello Cavazzoli, founder and president of Limon. An official comment .
Launching this product is the first step in its development, through simple methods and a constant volume.
How does the Bitcoin-backed Lemon credit card work?
According to what the company announced, in its first phase the product works with a simple method and a fixed amount: the user puts 0.01 Bitcoin as collateral (currently it is about $ 900) and then receives a credit card in pesos with a predetermined limit of 1,000,000 Argentine pesos. Therefore, Bitcoin remains frozen as collateral and cannot be traded or exchanged for local currency.
In the next section, users will be able to determine the amount of collateral and credit limit only. Lemons is also working on a solution that allows dollar purchases to be settled directly through a “digital dollar” using stablecoins such as USDC and USDT.
User benefits
Lemon has confirmed that credit card users will enjoy free purchases of digital dollars, bitcoin, ethereum, and more than 30 cryptocurrencies. In addition, special benefits include early access to new products, a newsletter with market information and a brief history.
The company noted that for the first three months, card processing will be waived by Rootstock, and after that, 7,500 pesos per month ($5) will be waived for users who spend $150 a month.
The company added that Bitcoin is the most valuable asset held as a currency by users of Lemon in Argentina, ahead of the cryptocurrency dollar and the peso, and that the purpose of this card is to convert money into currency for daily use.
A note Argentine cryptocurrency app “Lemon” is launching a bitcoin-backed credit card appeared for the first time Cryptonews Arabic.
