Paraguay's central bank has begun laying out how it will repay the depositors of Ueno Bank, the digital lender whose collapse this week cut off about three million customers and froze their accounts. The failure has already reached the highest level of government, forcing President Santiago Peña to announce his resignation on Thursday.

His exit did not end the political fight. Minutes after his announcement, the lower house of Congress voted 78-0 to impeach Peña and sent the charges to the Senate, according to AP. He is expected to present his defense at a special session of Congress on Friday.

Under the repayment plan announced by the central bank, each depositor is guaranteed up to 228.3 million guaraníes, about $36,000, with the first payments reserved for the smallest account holders.

How the Bank Failure Unfolded

The central bank placed Ueno into resolution on November 3 after regulators found that its solvency ratio had fallen below half the legal minimum. The resolution order followed accounting changes to the bank's financial statements and shut down its app, its cards, and its transfer services, leaving customers unable to access their money.

Ueno has said it serves about three million customers, roughly 60% of Paraguay's adult population. The lender also held around $800 million in public-sector deposits, including pension and health funds, according to AP. Those figures are why the freeze has reached well beyond retail savers: money tied to pensions and health services is among the balances caught up in the resolution.

The bank's troubles quickly spilled into politics. Lawmakers accused Peña of conflicts of interest and misconduct, pointing out that he had been a shareholder until last year in a company linked to the bank's owners. Peña has denied any wrongdoing and rejected suggestions of impropriety. According to Reuters, he said he sold his stake in March 2025.

“I want to apologise to the people if at any point I failed,” Peña said in a video message on social media. “It was never my intention to betray the trust you placed in me.”

He said he was stepping down to protect stability, social peace, and democratic institutions. He also said he wanted the Deposit Guarantee Fund, Paraguay's version of the U.S. FDIC, to ensure that funds are returned to customers.

Mensaje del Presidente de la República, Santiago Peña, al pueblo paraguayo. pic.twitter.com/RBz6IfFV9L — Santiago Peña (@SantiPenap) November 5, 2026

Depositor Payments and the Bitcoin Debate

The central bank has announced a deposit guarantee of up to 228.3 million guaraníes per depositor, or about $36,000. For comparison, the FDIC's standard insurance limit in the United States is $250,000 per depositor, per insured bank. A new central bank president has been appointed, and Congress has approved a process to pay depositors.

The first payments will go to depositors holding no more than 10 million guaraníes. Eligible customers must also have no outstanding debts with Ueno and must hold an account at another financial institution. The central bank has not said when depositors above that threshold will be paid, leaving the timeline for larger balances an open question.

The central bank has described Ueno's failure as an isolated case rather than a sign of a wider banking collapse. Even so, protesters gathered near the Congress building on Thursday, and police clashed with crowds demanding Peña's removal.

“Santiago Peña and the Colorado Party have stolen all our savings,” protester Luis Pineda told AP. “We are fed up with 70 years of plunder.”

The account freeze has also renewed a long-running argument among Bitcoin supporters about self-custody, the practice of holding one's own cryptographic keys rather than relying on an intermediary. A holder who controls a wallet's private keys can move funds without needing a bank or an exchange to unlock an account.

Self-custody carries its own risks. Lost keys cannot be recovered, theft is possible, and Bitcoin's price can swing sharply.

Resignation, Impeachment, and Succession

Peña won the 2023 election as the candidate of the ruling conservative Colorado Party. The party dropped impeachment proceedings against Vice President Pedro Alliana, who is next in line for the presidency.

Paraguay's Congress must approve a president's resignation. A special session convened on Thursday to address Peña's resignation was adjourned so lawmakers could continue the impeachment process instead.

Congress has scheduled a special session for Friday, when Peña is expected to present his defense, according to Reuters. In a post on X, Peña confirmed that he would appear to “exercise my right to a defence.”