Paraguay Ueno Bank Collapses, Stablecoins Become a Liquidity Alternative

According to Cointelegraph, Paraguayan digital bank Ueno was taken over by the central bank on November 3, leaving nearly 3 million customers (approximately 60% of the country's adult population) unable to access their accounts. The central bank stated that its solvency ratio had fallen below half of the statutory minimum requirement, with investigations uncovering suspicious lending activities and deficiencies in credit documentation and accounting. The incident sparked a political crisis, drawing thousands to the streets for protests. President Santiago Peña attempted to resign ahead of an impeachment vote but was later arrested on charges of breach of trust and abuse of power for personal gain. The local P2P cryptocurrency market immediately reflected the turmoil, with some sellers listing USDt at premiums of up to 13%. Meanwhile, the local currency, the guarani, depreciated by 12.3% over the course of a week, leading some residents to adopt stablecoins for preserving value or facilitating payments. David Eisenmann, founder of Paraguayan crypto exchange X4T, noted that the takeover coincided with the beginning-of-month deadlines for salaries, rent, and supplier invoices, preventing many business owners from paying their employees. As of November 9, the central bank announced that 93.1% of Ueno's depositors had already received compensation.