Bitcoin and USDT Trade at Premiums in Paraguay Amid Ueno Bank Collapse
Bitcoin and Tether's USDT have traded at premiums on Paraguay's peer-to-peer markets as the collapse of Ueno Bank triggered financial uncertainty, disrupted access to deposits and put pressure on the country's currency. The turmoil has also coincided with rising public interest in Bitcoin and the US dollar as alternative stores of value.
Data from CriptoNoticias, which monitors Binance P2P prices, showed Bitcoin's indicative buying price at 498 million Paraguayan guaraníes on November 6. At an exchange rate of approximately 6,469 guaraníes per dollar, that amounted to $76,982.53, around 1.7% above the international Bitcoin price of $75,716.
USDT also recorded a premium in local trading. A review of Binance P2P advertisements on November 5 found a median buying price of 6,399 guaraníes per USDT, approximately 4% higher than the central bank's dollar reference rate from the previous day. The difference narrowed considerably after the official exchange rate adjusted to reflect the guaraní's depreciation.
Ueno Bank Crisis Puts Pressure on Paraguay's Currency
Paraguay's central bank began resolution proceedings against Ueno Bank on November 2 after finding that the lender's solvency ratio had fallen below half the legally required minimum. The action disrupted access to deposits for customers of the digital bank, which served nearly 3 million people.
The situation also raised concerns over approximately $850 million in public-sector deposits held by the institution, including funds linked to pension and healthcare programs.
The banking crisis was accompanied by a sharp movement in the foreign-exchange market. ABC Color reported that the retail selling price of the US dollar rose from 5,900 guaraníes on October 30 to 6,500 guaraníes on November 5, an increase of approximately 10.2%.
Google Trends data also indicated growing interest in Bitcoin and the US dollar across Paraguay. Searches for Bitcoin started increasing on October 23 and reached a peak on October 30, before the formal announcement of Ueno Bank's closure. Interest remained elevated as of the reporting period, while searches for the dollar also climbed amid the financial uncertainty.
President Santiago Peña Faces Political Pressure
The bank's collapse has also intensified scrutiny of President Santiago Peña because of his previous investment in Grupo Vázquez, the business group that controls Ueno Bank.
Peña has denied wrongdoing and said he sold his stake in the group in March 2025. He offered his resignation on November 5, but lawmakers continued impeachment proceedings the following day.
In a public statement, Peña pledged to cooperate with investigators and called for authorities to prioritize the repayment of affected depositors. He said resolving the deposit crisis and clarifying the circumstances surrounding the bank's collapse should proceed simultaneously.
“Payment to savers cannot be left pending on what happens to me…My priority was to push, within the law and in coordination with the responsible institutions, the measures needed for savers to recover their savings. Clarifying the facts and resolving the payments are obligations that must move forward at the same time. One cannot be an excuse to postpone the other.”
The central bank has since started distributing payments through Paraguay's deposit-guarantee framework. The initial stage covers eligible customers with deposits of up to 10 million guaraníes.
Crypto Executives Point to Bitcoin as an Alternative
The financial turmoil has prompted several cryptocurrency industry leaders to highlight decentralized assets as an alternative to conventional banking infrastructure.
Emin Gün Sirer, founder of Avalanche developer Ava Labs, argued that cryptocurrencies such as Bitcoin and Avalanche's AVAX can be held outside traditional financial institutions. In a post on X, he said:
“[Crypto] assets such as $AVAX and $BTC are decentralized and require no trust in third parties. No one can take or freeze your $AVAX [or $BTC] without your consent.”
Samson Mow, CEO of Bitcoin adoption firm JAN3, also said broader national adoption of Bitcoin could reduce the effects of banking-system failures by providing an alternative financial network.
“Bitcoin adoption at a nation-state level can mitigate these types of situations. If $BTC is available to the people as a parallel rail, then systemic banking failures have far less impact.”
Mow added that JAN3 had met with Paraguay's central bank several years earlier to discuss Bitcoin adoption and the risks associated with conventional financial infrastructure.
Stani Kulechov, founder and CEO of Aave, also commented on the situation, saying that “Bitcoin matters now more than ever” in reference to Paraguay.
The comments reflect an industry argument that cryptocurrencies could provide alternative financial access in countries experiencing banking restrictions or currency instability. However, whether demand for Bitcoin and stablecoins in Paraguay remains elevated will depend in part on the authorities' ability to restore deposit access and rebuild confidence in the banking system.
source: cryptoslate
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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