Paraguay leader Santiago Pena steps down following failure of digital bank

Paraguayan President Santiago Pena stepped down from office on Thursday, yielding to intense political pressure and widespread public demonstrations triggered by the sudden failure of a major digital financial institution.

The crisis erupted after the collapse of digital lender Ueno blocked millions of depositors from reaching their funds. The disruption sparked widespread anger across the South American nation, driving citizens into the streets to demand Pena leave office.

In a prerecorded video statement delivered on Thursday, the outgoing leader explained his decision to vacate the presidency. Pena stated that he was stepping aside with the nation's stability, social peace, and the protection of democratic institutions in mind.

His departure arrived as congressional opponents moved rapidly to initiate impeachment proceedings. Lawmakers from the opposition had convened an extraordinary legislative session aimed at formally launching the removal process against the president.

Pena, who has maintained political ties as an ally of United States President Donald Trump, faced an unsustainable political environment as the financial scandal galvanized both the general public and rival politicians. The institutional fallout from the banking shutdown left the administration with dwindling support in the legislature.

The collapse of Ueno has caused severe financial disruption nationwide, leaving substantial portions of the population cut off from basic banking services and their personal savings, accelerating the rapid unraveling of Pena's government.