Three million people suddenly lost access to their money when one of Paraguay’s largest digital banks collapsed. Bank accounts were frozen, payments were halted, and mass protests forced the president to submit his resignation. The incident illustrates how quickly people can be cut off from their own money in a digitized banking system.
About three million bank customers in Paraguay were affected when the digital bank Ueno was shut down by the country’s central bank on Tuesday. The bank’s app, debit cards, and money transfers stopped working, leaving customers unable to access their funds. The collapse triggered widespread protests and a political crisis that reached all the way to the president. Santiago Peña, reports Associated Press (AP).
Three million customers were locked out of their money
Ueno had quickly grown into one of Paraguay’s largest digital banks, with customers representing over 60 percent of the country’s adult population. When the bank closed, these customers lost access to their accounts. The money did not disappear automatically, but became inaccessible when the digital banking services stopped working.
The background to this was that the central bank had discovered extensive irregularities in lending to companies with ties to the bank’s owners. The bank’s capital fell short of half the statutory minimum requirement. In addition, there were approximately $800 million in public deposits at Ueno, including pension funds.
Mass protests – the president was forced to back down
The bank collapse sparked widespread outrage among savers, retirees, and employees who could no longer access their money. Thousands of people gathered in the streets of the capital, Asunción, demanding reimbursement and political accountability. The protests were also directed at President Peña.
He is accused of conflicts of interest, suspected misuse of pension funds, and shielding the bank from scrutiny. He previously held an ownership stake in the corporate group behind Ueno and had appointed a former Ueno executive to serve as head of the central bank, with responsibility for supervising the bank.
On Thursday, November 5, Peña submitted his resignation following widespread protests and after even his own party, the Colorado Party, had turned against him. He also announced his resignation in a video message to the public, which was posted on X. There, he apologized to the people and insisted that he had ”never” intended to betray their trust.
However, Parliament refused to accept his resignation and instead proceeded with the impeachment process. Peña is now the subject of a criminal investigation, but denies having done anything wrong.
The banking crisis spread to other digital services
When Ueno's customers tried to open new accounts at other banks, the load became so heavy that even those banks' mobile apps crashed, according to the AP. As a result, more digital banking services experienced disruptions, even though those banks had not collapsed.
Paraguay's parliament has approved faster reimbursements through the deposit insurance program. According to the central bank, the guarantee will cover the entire balance for an estimated 97 percent of Ueno's customers. However, the reimbursements will take time and do not mean that the money will be immediately available.
The crisis highlights just how dependent people have become on functioning digital banking systems. When a bank closes, millions of people can simultaneously lose the ability to make payments, shop, and withdraw their money. Cash and alternative payment solutions can therefore be crucial when digital services stop working.
Petra Agapi: ”Take this as a wake-up call!”
This is what the Swedish critic of the system says Petra Agapi stick to it. In a written statement to Frihetsnytt, she has a clear message for the Swedish people:
”Agapi to the Swedish people—take this as a wake-up call! When nearly three million bank customers lose access to their money, we should reflect on our own preparedness. Three million people woke up with zero in their accounts! No one is spared in a world ruled by globalists. Prepare yourselves while you still can. Preparedness begins before the day the screen says ”service unavailable.” Keep cash on hand and spread your assets across several different banks. Gold investment—why not?”
Politicians' bullshit—what good does that do when you're out buying groceries???