Bitcoin and USDT attract modest premiums in Paraguay as millions face banking crisis

Bitcoin and USDT have traded at premiums in Paraguay's peer-to-peer markets as a banking collapse unsettles the country's financial system.

The turmoil has coincided with a 10% surge in the dollar against the Paraguayan guaraní, growing public interest in Bitcoin and calls from crypto executives for alternatives to traditional banking.

Data from CriptoNoticias, which tracks Binance P2P prices, showed Bitcoin's indicative buying price at 498 million guaraníes on Nov. 6. Using an exchange rate of approximately 6,469 guaraníes per dollar, this is equivalent to $76,982.53 and represents a premium of roughly 1.7% over the international Bitcoin price of $75,716.

A review of Binance P2P advertisements on Nov. 5 found a median buying price of 6,399 guaraníes for USDT, about 4% above the previous day's central bank dollar reference rate. The gap narrowed sharply as the official exchange rate caught up with the currency's depreciation.

Meanwhile, Google Trends data showed rising interest in Bitcoin and the dollar across Paraguay.

Searches for Bitcoin began trending upward on Oct. 23 and peaked on Oct. 30, before the formal announcement of Ueno Bank's closure. Interest remained evident as of press time, while searches for the US dollar also increased amid the financial uncertainty.

The developments suggest growing public attention to alternative assets as the country's banking and currency markets face mounting pressure.

Paraguay's central bank initiated resolution proceedings against Ueno Bank on Nov. 2 after determining that the lender's solvency ratio had fallen below half the legal minimum.

The decision disrupted access to deposits for customers of the digital lender, which served nearly 3 million people, and raised concerns about approximately $850 million in public-sector deposits, including pension and healthcare funds.

The financial disruption quickly spread to the foreign-exchange market.

According to local media outlet ABC Color, the retail selling price of the dollar climbed from 5,900 guaraníes on Oct. 30 to 6,500 on Nov. 5, representing an appreciation of approximately 10.2%.

The currency movement coincided with growing scrutiny of President Santiago Peña, who previously held a stake in Grupo Vázquez, the business group controlling Ueno Bank.

Peña has denied wrongdoing and maintained that he sold his investment in March 2025. He offered his resignation on Nov. 5, but lawmakers continued impeachment proceedings the following day.