50% Inflation Makes Argentinians Look to Bitcoin Credit Cards

 50% Inflation Makes Argentinians Look to Bitcoin Credit Cards

Cardholders can pay at any place that accepts Visa and get 2% cashback in Bitcoin.

Cryptocurrency exchange Lemon Cash is planning to increase the issuance of digital currency cards in Argentina to 3 million units this year, as inflation there increased to 50.7% in January compared with the same period last year, according to key figures. The government of this country announced on February 15.

In November 2021, Lemon Cash first launched this type of Visa card. When paying, Lanin Pay (a payment company in El Salvador) will convert the digital currency in the customer's account into pesos to pay the seller. With each transaction, cardholders will get 2% cashback in Bitcoin. By the end of last year, Lemon Cash had issued 100,000 tokens.

Lemon Cash digital currency visa card. Photo: Lemon Cash

Lemon Cash digital currency visa card. Photo: Lemon Cash

Although the card was originally a marketing tool, it is now being used by Argentines to curb the skyrocketing inflation here. Bloomberg data shows that Argentina currently has the fourth highest inflation in the world, after Venezuela, Lebanon and Zimbabwe. Economists surveyed by the Central Bank of Argentina expect inflation this year to rise to 55%.

"Latin America is the right place for these services," said Franco Bianchi, Marketing Director of Lemon Cash. Some countries there "have unstable economies and depreciated currencies, causing people to turn to cryptocurrencies as a lifeline".

Lemon Cash also plans to launch the card in Brazil mid-next month. They are negotiating with the authorities of this country to apply for a license to operate. They also plan to open the service in Peru and Chile this year.

Lemon Cash isn't the only company offering crypto cards in the region. Ripio – a digital wallet provider with more than 3 million users in Argentina and Brazil – is also in the game. Universal Exchange plans to launch a similar service in Argentina this year.

“We will bring a new way for you to use tokens in your daily life and enjoy the benefits of payments,” said Walter Carcamo, CEO of Universal Exchange.