Mark Zuckerberg's firm are said to developing a payment system in 12 countries, the BBC reports.
The social network's CEO is believed to have held talks with Bank of England governor Mark Carney and personnel in the US to discuss regulation of the digital platform.
The cryptocurrency, currently known as GlobalCoin, could begin testing as soon as this summer.
Although the company hasn't directly commented on the report, it did say they were "exploring ways to leverage the power of blockchain technology".
A spokesperson said last year: "This new small team is exploring many different applications."
It was also claimed they held meetings with MasterCard, Visa and other financial and e-commerce companies about the codenamed Project Libra.
According to the Wall Street Journal, the company were looking for total investments of around $1 billion in an effort to underpin the cryptocurrency's value and give it protection from the price surges and dips which have impacted the likes of Bitcoin.
Facebook is also said to be working on convincing e-commerce companies and apps to use the currency.