Tether's USDT stablecoin rose above 6,000 Paraguayan guaraníes this week after the Banco Central del Paraguay (BCP) opened resolution proceedings against Ueno Bank, citing a severe shortfall in the lender's solvency ratio.

JAN3 CEO Samson Mow responded to the collapse in a November 5th X post, arguing that Bitcoin adoption at the nation-state level can soften the blow of situations like this one.

"If BTC is available to the people as a parallel rail, then systemic banking failures have far less impact," Mow wrote.

JAN3 made that same case to the BCP in a September 2025 meeting, he added, though central bankers "always think that everything is fine with the legacy system."

USDT traded just above 6,000 guaraníes on November 4th, up from 5,692 on October 15th, according to exchange-rate data.

Based on those figures, that is a gain of roughly 5.4% in under three weeks.

Local supply has also been tight. Responding to Mow, Paraguayan Bitcoin event producer Joaquin Morinigo noted, “we don’t have enough USDT to cover OTC deals since the end of last month.”

The U.S. dollar also climbed 6.43% against the guaraní on the interbank market over the prior 25 days, trading near 6,060.

The BCP's board voted unanimously on November 2nd to start the process after adjustments to Ueno Bank's financial statements pushed its solvency ratio below 50% of the required minimum, according to a central bank statement.

The lender serves nearly 3 million customers, and the freeze on its funds has cut off their access to their money.

The BCP described the case as isolated and not a reflection of broader conditions in Paraguay's financial system.

The Superintendency of Banks will appoint interventors to verify the bank's financial position and preserve its assets during the proceedings.

Paraguay's Deposit Guarantee Fund covers deposits up to 75 monthly minimum salaries per depositor at each institution, a limit currently equal to 228.3 million guaraníes.

On November 4th, the BCP announced an advance payment of up to 40 minimum salaries per saver, minus any overdue debts owed to Ueno Bank.

Payments are set to begin within 24 hours and finish within five business days, deposited into each saver's largest account at another Paraguayan bank or a newly opened savings account.