The Bank of the Lao has launched a China-Laos retail payment link for the digital yuan and initiated a pilot for cross-border trade and investment transfers through the Cross-Border e-CNY Transfer System. Developed with the People's Bank of China, the initiative expands digital payment connectivity between the two countries following the central bank's advocacy of wider kip-yuan settlement and e-CNY use. Under an agreement between the Digital Currency Institute and Lao National Payment Network, Chinese users will initially be able to pay Lao QR merchants directly with e-CNY wallets. The business pilot will begin with selected Chinese companies investing in Laos and is intended to streamline transfers, improve transaction traceability and transparency, and support monitoring of whether financing is used for its intended purpose.