Paraguay's Ueno Bank collapses, stablecoins become a liquidity alternative.

Paraguay’s central bank seized digital bank Ueno on Nov. 3, cutting off account access for nearly 3 million customers, about 60% of the country’s adults, after its solvency ratio fell below half the legal minimum amid suspicious lending and accounting deficiencies. The collapse spilled into local crypto markets, with some P2P sellers charging up to a 13% premium for USDT as the guarani fell 12.3% in a week and residents turned to stablecoins to preserve savings and make payments. X4T founder David Eisenmann said the takeover hit at month-start when payroll, rent and supplier invoices came due, leaving many business owners unable to pay wages. The central bank said 93.1% of Ueno depositors had been repaid as of Nov. 9. The episode highlights how stablecoins can serve as a liquidity backstop when a domestic bank fails, and the focus now is on the pace of remaining repayments and whether USDT premiums and guarani volatility persist.