How Digital Currency Is Revolutionizing Waste Management in India?

Imagine a world where waste collectors, the unsung heroes of our cities, receive direct financial rewards for their work in a way that is transparent, secure, and empowering. This vision is now a reality, thanks to a pioneering collaboration between Circularity Innovation Hub India and Kerala-based sustainability startup Green Worms. The duo has launched India’s first large-scale circular economy initiative integrating Circularity Credits with the Reserve Bank of India’s Programmable Central Bank Digital Currency (CBDC). This initiative is not only a milestone for India but a global benchmark in merging sustainability with financial inclusion.

Wondering how this CDBC will help sanitation workers and promote ciruclar economy? TICE explains! 

The Need for Innovation in Waste Management

India generates over 62 million tons of waste annually, yet a vast majority of it ends up in landfills, exacerbating environmental pollution. While waste collectors play a crucial role in recycling and managing this waste, they remain one of the most marginalized communities. Lack of fair wages, financial security, and formal recognition make their work undervalued. This is where Circularity Innovation Hub India and Green Worms step in, revolutionizing the way sanitation workers are compensated while creating a transparent, circular economy model.

Circularity Innovation Hub India is a subsidiary of the UK-based Circularity Global, a climate-tech company that operates at the intersection of sustainability, blockchain, and finance. By developing solutions that transform waste into economic value, Circularity aims to accelerate the transition to a circular economy worldwide.

On the other hand, Green Worms, a Kerala-based sustainability startup, has been leading grassroots waste management initiatives across rural and coastal regions of India, including Kerala, Lakshadweep, Andaman Islands, and Tamil Nadu. By formalizing waste collection and infrastructure development, the company has generated over 1,000 micro-entrepreneurs and created 4,000 indirect jobs while recovering more than 100,000 tons of plastic waste.

Through its partnership with Kudumbashree (women’s self-help groups in Kerala), Green Worms ensures that waste collectors receive a guaranteed minimum income while helping businesses transition from a linear to a circular economy.

How Circularity Credits and CBDCs Are Changing Lives

Circularity Global introduced Circularity Credits, a novel environmental asset that quantifies and monetizes activities like waste recovery, recycling, and material reuse. These credits are recorded on blockchain, ensuring full transparency and traceability, and are now being integrated with RBI’s Programmable Central Bank Digital Currency (CBDC) to ensure direct, secure, and accountable financial transfers.

CBDC, a digital version of the Indian Rupee issued by the Reserve Bank of India (RBI), is designed to function as legal tender like physical cash but with enhanced digital capabilities. The integration of Circularity Credits with CBDC means that waste collectors and sanitation workers can receive payments directly in digital currency, removing intermediaries and ensuring full accountability.

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A Milestone in Financial Inclusion

Through this initiative, over 100 Kudumbashree women engaged in plastic and textile waste management have received additional monthly income via programmable CBDCs. Issued in collaboration with RBI and a leading private bank, these digital payments ensure that waste collectors can access financial resources securely and efficiently. The impact is tangible: recipients can now purchase essential goods with ease, boosting their financial resilience.

This marks Circularity’s second successful CBDC deployment, following its 2024 pilot for farmers, where financial aid was distributed via programmable CBDCs in partnership with RBI, IndusInd Bank, and Hindustan Agro Farmer Cooperative. In that pilot, 50 farmers in Maharashtra’s Ratnagiri district received digital payments to be used exclusively for agricultural inputs. With plans to expand to 1,000 farmers, the project demonstrated how CBDCs could be tailored for financial inclusion in various sectors.

Scaling Impact: A Vision for the Future

Joel Michael, Founder & CEO, Circularity Global, emphasized the broader vision, “By fostering a true Circular Economy, we have successfully merged environmental impact with social good through the world’s first large-scale deployment of Programmable CBDCs. Circularity Credits, currently trading between $40-$80 USD, have generated additional incomes of ₹500-1,000 per month for marginalized communities. We aim to scale this to ₹5,000 per month and positively impact 1 million lives within the next three years.”

Green Worms’ Founder & CEO echoed this sentiment, highlighting the transformative power of the initiative, “The integration of Circularity Credits and CBDCs is a game-changer for the waste management sector. By directly rewarding sanitation workers, we are not only improving livelihoods but also strengthening the circular economy in India. This initiative serves as a model for how sustainability and financial inclusion can work hand in hand.”

The Bigger Picture: A Circular Economy Model for India

Circularity Innovation Hub India is redefining climate finance, proving that economic empowerment, blockchain transparency, and environmental sustainability can co-exist and thrive. By expanding Circularity Credits and Programmable CBDC deployments across India, the company is unlocking new pathways for waste valorization, financial inclusion, and circular economy-driven growth.

The success of this initiative paves the way for scaling similar projects across sectors—be it in agriculture, sanitation, or renewable energy—demonstrating that innovation, when applied thoughtfully, can uplift communities while driving sustainability at scale.

A Blueprint for the Future

The partnership between Circularity Innovation Hub India and Green Worms is more than just a financial experiment—it’s a paradigm shift in how we value labor, waste, and sustainability. By embedding financial incentives directly into waste management, the initiative is ensuring that those at the forefront of environmental change are not left behind.

As India moves toward a more sustainable and inclusive economy, this pioneering project serves as an inspiration for policymakers, startups, and investors alike. The message is clear: when technology, finance, and sustainability converge, real, scalable impact is possible.