Chinese iron importers to abandon dollar settlements in favor of digital currency
Chinese iron importers plan to use digital yuan for cross-border settlements to reduce the dependence of transactions on the US dollar.
China Economic Net reported that several of the world’s largest iron ore companies have begun to push others in the industry to use blockchain platforms to sell raw materials directly to Chinese buyers for yuan..
Rio Tinto Group has recently used blockchain to conduct a 100 million yuan deal.
The article also says that importers from the Middle Kingdom intend to transfer cross-border settlements with suppliers to the digital yuan immediately after the completion of its tests..
The desire of business to reduce dependence on the dollar is also indicated by the fact that in the first half of the year 2020 year, the volume of international payments involving the Chinese currency increased by 36.7% compared to the same period last year.
text: Ivan Malichenko, photo: GettyImages