Paraguay President Resigns After Banking Lockout Hits Depositors
Edited by Steinar Vigdel Kolnes, Editor, Oslo
A banking crisis in Paraguay has renewed debate over Bitcoin and self-custody after millions reportedly lost access to deposits.
Paraguay’s president has resigned after the collapse of Ueno reportedly left millions of customers unable to access bank deposits, affecting an estimated 60% of the country.
The disruption has drawn attention to the risks of relying on centralized financial institutions when customers cannot withdraw or transfer their own money.
Bitcoin supporters have pointed to the episode as an argument for self-custody, where users hold assets without depending on a bank to authorize access.
The crisis also highlights the trade-offs involved: self-custodied crypto can reduce reliance on intermediaries, but users assume responsibility for securing their funds and credentials.
Source: Decrypt
