Demand for Tether (USDT) in Paraguay has risen sharply after the Central Bank of Paraguay placed digital bank Ueno Bank under regulatory intervention on Tuesday, November 3, 2026, following the discovery that its solvency ratio had fallen below 50% of the legal minimum.
The intervention suspended access to checking and savings accounts for approximately 3 million retail customers, freezing funds and limiting the ability of affected depositors to move money to digital asset exchanges. The Central Bank of Paraguay said the financial distress stems from internal management issues at Ueno Bank and does not threaten the structural solvency of the rest of the national banking system.
In currency markets, the USDT exchange rate against the Paraguayan guaraní climbed from 5,692 on October 15 to more than 6,000 guaraníes by November 4, 2026, an increase of more than 5%. Tether CEO Paolo Ardoino reacted on social media, describing the capital movement as a “flight to safety.”
Reports from Reuters said authorities arrested eight individuals connected to Ueno Bank’s executive management, while Carlos Carvallo resigned as head of the Central Bank of Paraguay. Liquidators appointed by the central bank expect to release a preliminary timeline for asset liquidation and liability restructuring within the coming week.
