Japan wants to fight money laundering by using virtual cash.
A source tells Reuters Tokyo is leading a global push to set up an international network for cryptocurrency.
It would be something similar to the SWIFT network used by banks to move money around the globe.
According to the source, a plan for the network was approved in June though the government has refused to comment.
They want it in place in the next few years.
In 2017, Japan became the first country in the world to regulate cryptocurrency exchanges at a national level.
With its slowing economy, Tokyo has been pushing the fintech industry in hopes it might help kickstart growth.
But, like many other governments, its concerned about how unregulated virtual money is and has been pushing to ensure the security of virtual currencies.
The new network might meet resistance from users though, since the attraction of cryptocurrencies is - in part - its lack of regulation.
This comes just as Facebook announces its plans to launch a digital coin Libra.
Those plans have been bashed by U.S. lawmakers, who say the company can't be trusted the world financial system or its users' data.
(SOUNDBITE) (English) U.S. SENATOR SHERROD BROWN, SAYING:
"We'd be crazy to give them a chance to experiment with people's bank accounts, to use powerful tools they don't understand like monetary policy, to jeopardize hardworking Americans (MARCUS LISTENING) to provide for their family."
Scrutiny over Libra has been a blow to other cryptocurrencies as well: Bitcoin slumped around 30% after Facebook's announcement and Ethereum tanked by nearly half.
Digital currencies also took the spotlight for a G7 meeting in France where ministers on Wednesday agreed to tackle Libra and confront cryptocurrencies.