Bitcoin expert on the Paraguay crisis: "USDT is safer than money in the bank"

The collapse of Ueno Bank in Paraguay has triggered a political crisis in Asunción and pushed savers toward dollar-pegged stablecoins and bitcoin, with bitcoin expert commentary arguing that USDT is now safer than keeping money in a bank. The bank's failure has shaken confidence in the traditional financial system, prompting depositors to flee into crypto assets as a store of value. The article frames the shift as a flight to safety rather than speculation, with USDT's dollar peg and deep liquidity cited as reasons savers prefer it over domestic bank deposits. The episode matters because it tests the "stablecoin as digital dollar" thesis in an emerging market where banking risk is real, not theoretical. What to watch next is whether the panic-driven demand for USDT and bitcoin persists after the political fallout settles, and whether other Paraguayan banks face similar deposit outflows.