The collapse of Paraguay’s digital lender Ueno Bank last week left nearly three million customers — roughly 60% of Paraguay’s adults — unable to access their accounts.
Paraguay’s Central Bank placed Ueno into resolution on Nov. 3 after its solvency ratio fell below half the legally required minimum. An investigation uncovered questionable lending practices and deficiencies in credit documentation and accounting.
The collapse also triggered a political crisis, with thousands taking to the streets to protest and President Santiago Peña attempting to resign before being impeached and arrested on charges of breach of trust and using his office for personal gain.
Paraguay’s peer-to-peer crypto market immediately reflected the turmoil, with some sellers asking for a USDt premium of up to 13%. “USDt is a lifeline for hundreds millions of people in the world,” Tether chief executive Paolo Ardoino said.
For many, the incident…
