Interesting change of attitude
Until about 10 years ago, it was illegal to take yuan outside China. Even now, there's a very short list of countries for which China allows international transactions to be carried out in yuan, and use as a reserve currency is heavily restricted. But now we're suddenly worried that they're going to start handing out yuan to anyone who will take it for suveillance purposes. And remember that however they like to advertise it, this is just a transfer method for the same currency, not anything actually new.
It's interesting because it sounds like something they would absolutely try doing, but it must create some serious arguments behind closed doors between those who want to spread yuan around as a surveillance tool and those who want to continue restricting it as much as possible.