India Launches First CBDC for Sanitation Workers
India has launched its first Central Bank Digital Currency (CBDC) initiative aimed at sanitation workers. This innovative project, a collaboration between Circularity Innovation Hub India and the Kerala-based sustainability startup Green Worms, integrates Circularity Credits a novel environmental asset into the Reserve Bank of India’s (RBI) Programmable CBDC system.
The initiative aims to improve the livelihoods of sanitation workers across India while driving a shift towards a circular economy. Circularity Credits, issued by Circularity Global, quantify and monetise activities related to waste recovery, recycling, and material reuse. These credits are recorded on a transparent blockchain platform, creating a verified marketplace for businesses, governments, and individuals to engage in circular economy practices. Green Worms, a key partner in this initiative, is known for addressing the waste crisis in India’s coastal and rural regions, including Kerala, Lakshadweep, Andaman Islands, and Tamil Nadu. The startup has created dignified employment opportunities for over 1,000 micro-entrepreneurs and 4,000 indirect workers, while recovering more than 100,000 tons of plastic waste.
By collaborating with Kudumbashree women’s self-help groups in Kerala, Green Worms ensures a minimum guaranteed income for waste collectors, contributing to the country’s transition from a linear to a circular economy. As part of the CBDC initiative, over 100 women involved in waste management have started receiving additional income through Programmable CBDCs. These digital assets enable secure, transparent payments, providing workers with financial autonomy and the ability to purchase essential goods. The move has the potential to improve financial resilience for sanitation workers, allowing them to participate in the formal economy in a way that was previously not possible.
Circularity Innovation Hub India is leading this transition by leveraging blockchain technology and financial tools to create a more inclusive and sustainable future. The CBDC-based payments to sanitation workers not only address income inequality but also reinforce the country’s push towards environmental sustainability. This initiative follows Circularity’s earlier success with farmers in Maharashtra, where it deployed CBDCs to ensure the transparent disbursement of financial aid for agricultural inputs.
With its innovative use of technology and a focus on marginalised communities, Circularity continues to set new benchmarks in both financial and environmental sectors. By integrating blockchain with circular economy principles, this project marks a significant milestone in India’s journey towards achieving financial inclusion and building a more sustainable future for its most vulnerable communities.
