Chinese merchants that import iron ore are now considering using the digital yuan instead of the USD.
Importers in China are making plans to start using crypto for their trades. In the iron ore sector, the digital yuan has been favored for all transactions that require trade between China and other countries.
The China Economic Net revealed that there are some notable iron miners that have called on China to choose blockchain as a mode of payment so that they can deliver their products straight to them.
For this reason, the importers thought it would be a nice idea to choose the digital yuan by the time is ready.
Backed by blockchain
Not long ago, Ansteel Group International and Trade Co. Ltd handled a cross-border transaction with Rio Tinto Group that involved the sum of RMB 100 million (about $14.4 million)
While speaking with International Finance News, a spokesperson from Rio Tinto had this to say about the transaction:
“As early as 2014, we conducted RMB transactions with Baosteel. In 2019, we also established a port business. Now, Chinese customers can buy our products in small quantities from Chinese ports and pay in RMB. As the main supplier of Chinese customers, we believe that port sales can help us better serve our existing customers.”
According to a report from Xinhua News Agency on Aug 10, payments made with RMB across borders from January to June this year reached RMB 12.7 trillion (or $1.83 billion). Compared to last year and the same period, this is an increase of 36.7%.
In China, the first test for payments using a cross border platform was done in the city of Qingdao. That test yielded much fruits as the companies that were used have successfully done transactions with their counterparts in different continents.