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Bitcoin Fixes This? Paraguay President Resigns After Bank Lockout Hits 60% of Country
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Paraguayan President Santiago Peña announced his resignation Thursday after Ueno Bank’s collapse locked roughly three million customers out of their accounts. The failure turned a banking emergency into a political crisis. Minutes later, the lower house voted 78-0 to impeach Peña and sent charges to the Senate. Vice President Pedro Alliana prepared to take over.
The central bank placed Ueno into resolution on Nov. 3 after regulators found its solvency ratio below half the legal minimum. Accounting adjustments to the bank’s statements preceded the move. Ueno’s app, cards, and transfers stopped working. The bank claimed about 2.9 million customers, more than 60% of Paraguay’s adults.
Ueno also held roughly $800 million in public-sector deposits, including pension and health funds, according to AP. That complicated the freeze on ordinary savings and wages. The central bank called Ueno’s failure an isolated case, not evidence of a broader banking collapse.
The deposit guarantee fund will cover up to 228.3 million guaraníes per depositor, about $36,000. Initial payments target eligible accounts holding no more than 10 million guaraníes. Depositors must have no Ueno debts and an account at another financial institution. Peña said his greatest wish was that the return of funds be guaranteed.
Peña previously held a stake in a company linked to Ueno’s owners, fueling conflict-of-interest allegations. He denied wrongdoing and said he sold his interest in March 2025, according to Reuters. Outside Congress, protester Luis Pineda told AP that Peña and the Colorado Party had “stolen all our savings.”
The crisis revived Bitcoin’s self-custody argument. A holder who controls private keys can authorize transfers without a bank unlocking an account. That is the principle behind “not your keys, not your coins.” But self-custody carries risks: lost keys are unrecoverable, theft is possible, and price volatility remains.
Paraguay’s central bank says the first guarantee payments will go to depositors with up to 10 million guaraníes, no Ueno debts and an account elsewhere. The political confrontation continues in the Senate as Alliana prepares to assume power. The bank’s collapse has sharpened debate over intermediary risk and financial self-reliance.
