Paraguay's digital bank collapses, freezing the deposits of 3 million people overnight: Angry protesters carried a former senator out of the protest site, and the USDT premium surged to 13%! Ueno Bank, Paraguay's largest digital bank, collapsed. Ueno had approximately 2.94 million customers, covering about 60% of the country's adult population. Many young people used it as their first bank, relying entirely on its mobile app for salaries, savings, and daily expenses. After the central bank took over on November 3, accounts, bank cards, transfers, and payments all ceased to function, leaving nearly 3 million users suddenly unable to access their funds. How did Ueno collapse? The core issue was the uncontrolled lending by its holding group's related parties. Regulatory investigations found that from September 2025 to May 2026, the bank cumulatively lent approximately $146 million to three related companies, equivalent to 35% of its effective capital, exceeding the legal limit for related-party lending by approximately $61 million. Some loans lacked collateral, and funds were transferred to other companies within the group. Following a regulatory review, banks' solvency ratios had fallen to less than half of the legal minimum, ultimately leading to their takeover by the central bank. This crisis also involved approximately $850 million in public funds, including substantial pension and social security funds. Angry citizens took to the streets, protesting against the government and banks' alleged collusion. Former Senator and former presidential candidate Payo Cubas attempted to join the protests but was grabbed by the hands and feet and carried off the scene. A USDT premium emerged in the cryptocurrency market. With bank accounts frozen and local dollar liquidity suddenly tight, people began turning to P2P lending platforms for alternative dollar channels. Bybit saw some USDT sell orders reach 6942 Guarani, while the official dollar reference rate was approximately 6144 Guarani, a premium of nearly 13%. This banking crisis made the value of stablecoins very clear: when traditional banks cannot provide liquidity, people seek alternative dollar channels. https://(x.com)/Xx17965797N/status/2118781730370806217/video/1