Demand for the Tether stablecoin USDT is rising in Paraguay after the collapse of Ueno Bank, a digital lender used by more than half of the country’s adults.
USDT rose from about 5,692 guaraníes on 15 October to more than 6,000 guaraníes on 4 November, a gain of more than 5%, according to figures shared on X by Bitcoin advocate Samson Mow. The US dollar also strengthened against the guaraní over the same period, so part of the move reflects a weaker local currency.
Tether CEO Paolo Ardoino responded to reports of rising USDT demand in the country with a short post on X: “Fly to safety.”
Ueno Bank’s collapse
Paraguay’s central bank placed Ueno Bank into resolution on 3 November, after finding its solvency ratio had fallen below half the legal minimum. The shutdown took the bank’s app, cards and transfers offline.
Ueno claimed about 2.9 million customers, more than 60% of Paraguay’s adults, and held around $800 million in public sector deposits, including pension and health funds, the Associated Press reported. Eight people linked to the bank have been arrested, and the central bank’s president, Carlos Carvallo, has resigned, according to Reuters.
The central bank says Ueno is an isolated case, not a sign of wider problems in the banking system.
What customers can recover
Paraguay’s deposit guarantee covers up to 228.3 million guaraníes per depositor, about $36,000. The first payouts are aimed at eligible accounts holding up to 10 million guaraníes, for customers with no debts to Ueno and an account at another bank.
The political fallout
The crisis has also reached the top of government. President Santiago Peña announced his resignation on Thursday, 5 November, shortly before the lower house of Congress voted to impeach him. Peña previously held a stake in a company linked to Ueno’s owners, which he says he sold in March 2025. He has denied wrongdoing.
Why stablecoins
Dollar stablecoins such as USDT can be bought and held without a local bank account, which has made them popular in countries facing banking or currency problems. Holding them comes with its own risks, including depending on the issuer and the platform used to store them.
What happens next
The speed of deposit guarantee payouts is likely to decide whether demand for USDT keeps rising or eases as customers regain access to their money.
