The Chinese iron ore sector uses blockchain-based cross-border platforms to conduct business transactions in the local currency Yuan (RMB), rather than the usual US dollar (USD) transactions., as importers begin to adopt the technology.
According to China Economic Net Some of the largest iron mining companies in the world have called for the introduction of blockchain platforms to sell the material directly to Chinese companies without complications.
The report suggests that Importers also want to introduce the next digital yuan once it is officially launched in the countryto make transactions less dependent on the US currency.
Driven by blockchain
Recently, The Ansteel Group International Economic Trade Co., Ltd. and the Rio Tinto Group have completed a RMB 100 million (US $ 14.44 million) cross-border settlement transaction powered by a blockchain.
During an interview with International Finance News, a representative from Rio Tinto commented on the blockchain-powered transaction:
“As early as 2014, we concluded transactions in RMB with Baosteel. In 2019 we also set up a port business. Now, Chinese customers can buy our products in small quantities from Chinese ports and pay in RMB. As the main supplier to Chinese customers, we believe port sales can help us better serve our existing customers. “
The Xinhua News Agency reported on August 10th In the first half of the year, RMB cross-border revenues and payments totaled RMB 12.7 trillion (US $ 1.83 billion).This corresponds to an increase of 36.7% compared to the previous year.
Cointelegraph reported on it in April A blockchain-based pilot project for cross-border platforms was launched in the Chinese city of Qingdao. The companies involved have already carried out their first transactions with partners in North America and South Asia.