The launch of a cross-border digital payment link between China and Laos marks an important step in regional financial integration, demonstrating how central bank digital currencies (CBDCs) can connect with conventional payment networks while preserving local-currency settlement, the ASEAN+3 Macroeconomic Research Office (AMRO) said on Monday.
The People’s Bank of China (PBOC) and the Bank of the Lao PDR (BOL) launched the China–Lao PDR Cross-Border Digital Payment Connect in Nanning on Sept 18, 2026. The initiative links China’s digital yuan (e-CNY) infrastructure with Laos’ national payment network, enabling simpler and more transparent cross-border retail payments.
Unlike most ASEAN+3 QR payment links, which connect commercial bank accounts and e-money providers, the arrangement connects a retail CBDC with a domestic payment network while retaining settlement in local currency, AMRO said in a commentary.
The initiative builds on a memorandum of understanding signed by the two central banks in March 2024, which was expanded in June 2026. China’s Digital Currency Institute and LAPNet, Laos’ national payment network, also agreed to support the technical connectivity.
The corridor is supported by growing economic ties between the two countries. China is Laos’ largest foreign investor, with cumulative investment exceeding $18 billion, while more than 1.16 million Chinese visitors travelled to Laos in 2025. The Lao-China Railway has further strengthened connectivity and tourism flows.
Under the arrangement, Chinese visitors can scan participating Lao merchants’ QR codes using e-CNY applications, review exchange rates and fees, and confirm payments. Merchants receive payment in Lao kip through domestic payment channels.
Payments are routed through LAPNet and settled in kip by Lao-regulated financial institutions, with regulated intermediaries handling foreign exchange conversion and cross-border processing. The system supports QR codes from 17 LAPNet members, comprising 15 banks and two e-money providers.
AMRO said the arrangement could provide Lao merchants with an alternative to cash and international card payments while making transactions more convenient for Chinese tourists and businesses.
Hong Kong’s experience with e-CNY offers useful lessons for adoption. Its e-CNY infrastructure is connected to the Faster Payment System, allowing residents to open wallets without a Mainland bank account and fund them through familiar domestic payment channels.
The number of e-CNY wallets registered using Hong Kong mobile numbers reached about 80,000 by end-January 2026. Simple onboarding, familiar funding arrangements and transparent exchange rates have helped support adoption, AMRO said.
However, wider adoption of the China-Laos payment link will depend on more than technical connectivity. Strong anti-money laundering and counter-terrorism financing safeguards, cybersecurity, operational resilience, transparent foreign exchange conversion and sound data governance will be essential to maintaining public confidence.
AMRO recommended monitoring indicators such as active users, participating institutions, payment success rates, processing times, refund and fraud rates, transaction fees and exchange-rate spreads. Publishing selected aggregate statistics could also improve transparency and demonstrate the system’s performance.
Looking ahead, AMRO identified four priorities for expanding the initiative: widening access to more banks, e-wallets and merchants, including small businesses outside major tourism centres; ensuring reliable services and effective dispute-resolution mechanisms; extending functionality beyond Chinese consumer-to-Lao merchant payments to remittances and business transactions; and adopting a gradual approach to expansion.
Selected enterprises are already piloting cross-border business and investment transfers through the Cross Border e-CNY Transfer System. AMRO said broader expansion should follow sandbox testing and regulatory assessment.
As the initiative grows beyond tourism-related transactions, authorities will also need to monitor potential currency substitution, compliance with capital-flow management measures and money-laundering risks arising from higher cross-border payment volumes.
AMRO said the China-Laos initiative adds a retail CBDC-to-domestic-payment-network model to ASEAN+3’s existing QR payment, fast-payment and wholesale CBDC initiatives.
Its longer-term success will depend on adoption, effective governance and data transparency, while the experience could offer lessons for similar cross-border payment arrangements elsewhere in the region.
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