The revelation by BHP has come soon after it completed an iron ore sale worth $14.10 million (yuan 100 million) last month. Specifically, that shipment of iron ore was yuan-denominated.
The blockchain powered digitization initiative and the use of renminbi for settlement are regarded as crucial breakthroughs in cross-country shipments.
Baowu, which is the world’s largest steel manufacturer, has explained the need for yuan-denominated dealings with BHP and two more renowned iron ore miners, namely Vale and Rio Tinto:
“The active promotion of renminbi settlement in iron ore transactions is not only for operational needs, but also in line with the trend of yuan internationalization.”
Baowu disclosed that it successfully completed a blockchain powered yuan-denominated import trade with Rio Tinto in recent times.
China, being the world’s biggest importer of iron ore, has recorded an 11% rise in imports last month, in the wake of Covid-19 pandemic, which eased production by local steel mills in the first three months of 2020.
Of late, BHP has trialed blockchain technology in collaboration with Japan based shipping company NYK. The trial was carried out to validate eco-friendly biofuel under the framework of de-carbonization.
BHP, which has more than 72,000 people in its pay list, including contractors across the globe, has been studying the utilization of Ethereum blockchain for many years, as per the blockchain’s co-founder Vitalik Buterin.