Is there a reason why no one banks in Paraguay? There is a dude standing by the bank with a shotgun waiting to blow the head off of any robber, I felt very safe there and their service was quite professional and honest. More so than the street exchangers. I wouldn't have hesitated to open an account there if I needed to.
There may be other reasons. Here in Argentina 21 years ago the government confiscated all dollar-denominated bank deposits and replaced them 1-to-1 with pesos, which you weren't allowed to withdraw more than a few at a time, so you had to watch helplessly as your money lost 75% of its value overnight. If I had to guess which South American countries something like that would happen in next, I'd pick Venezuela, Bolivia, Paraguay, and Argentina again, in that order. But that's not because I have deep knowledge of Paraguayan politics, so I could be wrong.
I can't imagine it would be a warm feeling for someone with tax liabilities in Argentina to have a white-market bank account in a friendly country nearby.