The War of the Triple Alliance (1864-1870) was one of the most devastating conflicts in South American history. Paraguay faced the combined forces of Brazil, Argentina, and Uruguay, resulting in catastrophic losses—estimates suggest 60-70% of Paraguay's population perished.

In the 1880s, as Paraguay began to rebuild, new financial institutions emerged. The Banco Nacional del Paraguay and private banks like the Banco del Paraguay y Río de la Plata issued banknotes featuring the people who were leading the nation's recovery.

These banknotes were printed by the renowned American Bank Note Company (ABNC), featuring intricate guilloche patterns, allegorical vignettes, and engraved portraits that represented both security and artistry.