The Central Bank of Zimbabwe has approved the use of a new gold-backed digital token for domestic transactions.

The move, announced by the bank's governor, John Mangudya, is part of efforts to validate and ensure the availability of gold to the country's central bank.

The decision to allow the use of the tokens is also aimed at preserving value in transactions, amid issues of fiscal instability in Zimbabwe.

External auditors have been hired to manage the verification process of the new digital tokens.