Abstract: Methods and systems for managing programmable currency-based transactions through nested smart contract-based wallets are disclosed. Method performed by a server system includes receiving fund transfer of a digital currency associated with a smart contract including a set of predefined instructions from a first wallet to a second wallet. Method includes determining a transaction category of the digital currency based on the set of predefined instructions. Transaction category indicates purpose of the fund transfer as per the smart contract. Method includes generating and depositing the digital currency to new sub-wallet(s) associated with the second wallet based on the transaction category of the digital currency. Each of the new sub-wallet(s) is eligible to hold the digital currency for a specific transaction category. Alternatively, the method includes depositing the digital currency to preexisting sub-wallet(s).