China’s iron ore sector is turning to a blockchain-powered cross-border platform to execute trade deals in the national currency yuan (RMB), rather than the more usual USD transactions, as importers start to adopt the technology.
According to China Economic Net, some of the world’s largest iron miners have called for the adoption of blockchain platforms to sell materials directly to Chinese companies without involving any greenback at all.
The report suggests importers also want to adopt the upcoming digital yuan as soon as it’s officially launched in the country, to make transactions less dependent on the American currency.
Powered by Blockchain
Recently, Ansteel Group International Economic and Trade Co., Ltd. and Rio Tinto Group completed a RMB 100 million ($14.44 million) cross-border settlement transaction powered by blockchain.
During an interview with International Finance News, a Rio Tinto representative commented on blockchain-powered transactions:
“Since 2014, we have made RMB transactions with Baosteel. In 2022, we also established a port business. Now, Chinese customers can buy our products in small quantity from Chinese ports and pay in RMB. As a major supplier of Chinese customers, we believe that sales at the port can help us better serve our customers. “
Xinhua News Agency also reported on August 10 that in the first half of this year. RMB cross-border receipts and payments totaled RMB 12.7 trillion ($1.83 billion), a year-on-year increase of 36.7%.
In April, a blockchain-powered cross-border platform was implemented in the Chinese city of Qingdao. The companies involved have now made their first trades with partners in North America and South Asia.