El Salvador to Continue Bitcoin Purchases Despite IMF Warning

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El Salvador has confirmed that it will continue buying bitcoin, potentially at an increased rate, despite receiving warnings from the International Monetary Fund (IMF) to limit its exposure to the cryptocurrency. The announcement came a day after the government secured a $1.4 billion loan agreement with the IMF, which included provisions for scaling back its bitcoin policies.

Government’s Commitment to Bitcoin

Stacy Herbert, the director of El Salvador’s National Bitcoin Office, stated on X that bitcoin would remain legal tender in the country and that the government would continue to build its strategic reserves of the cryptocurrency. This decision comes despite the IMF’s recommendation that El Salvador limit its bitcoin holdings.

IMF Agreement and Bitcoin Policies

As part of the deal with the IMF, El Salvador agreed to reduce its bitcoin-related policies, including the stipulation that tax payments would no longer be accepted in bitcoin, but only in U.S. dollars, the country’s other official currency. IMF spokesperson Julie Kozack also confirmed that upcoming legal reforms would make bitcoin’s acceptance by the private sector voluntary.

Potential Motivations Behind the Decision

Eugene Epstein, head of trading and structured products for North America at Moneycorp, suggested that the government’s decision to continue purchasing bitcoin could be a response to mitigate any negative reactions to the perceived reduced role of the cryptocurrency in the country. Given the terms of the IMF deal, Epstein believes that continuing to purchase bitcoin could have been a strategic move by President Nayib Bukele.

Current Bitcoin Holdings

El Salvador currently owns 5,968 bitcoins, valued at approximately $594 million. The country made history in September 2021 by becoming the first in the world to adopt bitcoin as legal tender, alongside the U.S. dollar, despite facing opposition from the IMF over the potential financial and legal risks.

The Future of Bitcoin in El Salvador

Bukele has been vocal about positioning El Salvador as a hub for digital currency adoption, including hosting the “Adopting Bitcoin” conference last month. The country also boasts “Bitcoin Beach,” a tourist spot where local businesses have started accepting bitcoin payments.

Russia Launches Mass Cyberattack on Ukraine’s State Registries, Disrupting Services

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Russia has launched a major cyberattack on Ukraine’s state registries, causing significant disruptions to vital services, Ukrainian Deputy Prime Minister Olha Stefanishyna announced late on Thursday. The registries, which hold critical data on Ukrainian citizens, including birth, death, marriage records, and property ownership, were temporarily suspended as a result of the attack.

Impact and Response

Stefanishyna described the cyberattack as the largest external attack on Ukraine’s infrastructure in recent times. She confirmed that the cyberstrike targeted the Ministry of Justice’s unified and state registries, leading to their temporary suspension.

The Deputy Prime Minister stated that the attack was clearly aimed at disrupting Ukraine’s crucial infrastructure. She added that it would take approximately two weeks to fully restore operations, although some services would begin resuming on Friday. Initial assessments indicated that other state services remained unaffected by the attack.

Future Protection Measures

Once restoration efforts are complete, Stefanishyna noted that a thorough investigation of the cyberattack would be conducted. The goal of this analysis will be to enhance Ukraine’s defenses against similar attacks in the future.

Ongoing Cyber Conflict

This attack comes amid a long-standing cyber conflict between Russia and Ukraine, with both countries’ institutions facing significant cyber threats. Notable incidents include a mass attack on Ukrainian mobile provider Kyivstar in December 2023, as well as a series of cyberattacks on Russian ministries in June 2023.

 

Accenture Surpasses Revenue Expectations on Strong Demand for GenAI Services

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Accenture (ACN) exceeded Wall Street’s first-quarter revenue and profit projections, reporting strong growth fueled by rising demand for its services in generative AI (GenAI). This growth has prompted a 6.5% increase in Accenture’s stock price during early trading on Thursday.

Growing Demand for GenAI Services

The surge in revenue comes as businesses increasingly focus on scaling AI projects, enhancing data security, and digitizing core operations to boost growth and reduce costs. Accenture is capitalizing on this trend, providing AI-powered solutions across various industries. These solutions range from predictive maintenance in manufacturing to automating advertising workflows.

Accenture’s GenAI business recorded new bookings of $1.2 billion, with $500 million in revenue, driven by a surge in AI project utilization. The company’s total new bookings for the quarter reached $18.7 billion, slightly higher than the previous year’s $18.4 billion.

Workforce Expansion

To meet the growing demand, Accenture has expanded its data and AI workforce to 69,000 employees and plans to increase this number to 80,000 by 2026. This expansion highlights the rising need for AI and data-driven services across industries.

Financial Outlook

Despite the strong results, Accenture’s revenue growth forecast for the year has been slightly raised to a range of 4% to 7%, compared to its earlier estimate of 3% to 6%. The midpoint of this range is lower than analysts’ expectations of 5.63%. For the second quarter, the company has forecasted revenue of between $16.2 billion and $16.8 billion, slightly below the average analyst estimate of $16.63 billion.

Quarterly Performance

Accenture’s first-quarter revenue reached $17.7 billion, surpassing the $17.12 billion forecast by analysts. The growth was driven by strong performance in the Americas and EMEA regions, as well as across the public service and health sectors.