Paraguay’s central bank ordered the resolution of digital lender Ueno Bank after its solvency ratio fell below half the legal minimum, suspending operations and leaving millions of customers without access to deposits or digital services. The move, announced on November 3 following a board decision the previous day, has coincided with a rise in demand for the dollar-backed stablecoin USDT and elevated premiums on some peer-to-peer trading platforms.

Bank Intervention and Scale of Impact

Ueno Bank, formerly known as Banco Familiar and operating as a major digital bank, reported 2.94 million customers as of June. Authorities froze digital banking, withdrawals and transfers, restricting depositors’ ability to move funds. The institution held more than 800 million dollars in public money, including approximately 380 million dollars invested by the Instituto de Previsión Social, the country’s state pension system. Funds linked to CONMEBOL were also affected.

The Banco Central del Paraguay stated that the shortfall was specific to Ueno and did not indicate systemic risk across the national banking sector. Eight individuals connected to the bank, including senior executives, were arrested on related charges. Central bank president Carlos Carvallo resigned amid the developments.

Deposit protection covers up to 228 million guaraníes per person. Authorities planned advance payments of up to 40 minimum monthly wages, after deducting any outstanding debts to the bank. Initial payouts of up to about 1,700 dollars were scheduled to begin by November 6, with smaller depositors prioritized. Funds would be transferred to accounts at other institutions, and new accounts opened where needed. Full resolution of larger balances depends on final asset valuations by the Superintendencia de Bancos.

USDT Price Movements and Peer-to-Peer Premiums

Between October 15 and November 4, the local USDT rate against the guaraní rose from 5,692 to more than 6,000, an increase exceeding 5 percent according to market observers. Data from exchange-rate trackers placed the figure at 6,061.76 guaraníes on November 4, a 6.49 percent gain over the period. Over the same window the central bank’s dollar reference rate climbed 7.48 percent from 5,716.25 to 6,144.02 guaraníes, while the interbank dollar rate advanced 6.43 percent to about 6,060 guaraníes.

On Bybit’s peer-to-peer market, selected sellers listed USDT at elevated levels. One GlobalPartner offer early on November 5 sought 6,942 guaraníes per USDT, equivalent to a 13 percent premium over the central bank’s November 4 dollar reference of 6,144.02. Another seller, EzeCDE, listed 6,943 guaraníes. These offers accepted order sizes ranging from 15,000 to roughly 1.01 million guaraníes and permitted payment via Paraguayan bank transfers.

Pricing was far from uniform. Three smaller listings asked between 4,992 and 5,000 guaraníes, limited to lower volumes of 16,000 to 48,452 guaraníes. On the buy side, one participant bid 6,020 guaraníes per USDT, below the official benchmark. Conditions depended on payment method and transaction size, so the higher figures represented advertised asking prices rather than completed nationwide trades or a single market rate.

Bitcoin advocate Samson Mow had earlier noted the USDT appreciation past 6,000 guaraníes and linked it to depositors seeking alternatives outside the traditional banking system. Customers with frozen Ueno balances cannot use those funds directly to acquire USDT on peer-to-peer platforms, because buyers must first transfer accessible guaraníes to sellers’ external accounts.

Official Response and Ongoing Measures

On November 4 the central bank outlined the advance-payment process, stating it would begin within 24 hours and conclude within no more than five business days. Securities regulators also suspended redemptions, cash distributions and new subscriptions for 13 mutual funds holding Ueno-linked assets.

While the official dollar and USDT rates both strengthened against the guaraní in the weeks preceding the resolution, the divergence between some peer-to-peer asking prices and the central bank reference has drawn attention to local demand for dollar-linked instruments during the period of restricted banking access. Authorities continue to process the resolution and distribute guaranteed funds while maintaining that the difficulties remain confined to the single institution.