The introduction of cryptocurrency and blockchain for humanitarian purposes is planned for a new expansion, as the Danish Red Cross sponsored a disaster relief team aiming to provide relief after a volcanic eruption.

According to CIR magazine, the disaster group – often shortened as cat bond – is backed by private companies and other humanitarian companies with investors such as Solidum Partners and Plenum Investments associated with the project.

Using blockchain technology developed by Replexus – equipment to insure insurance risks – Cat Bond aims to raise funds for humanitarian aid and accelerate its launch after a catastrophic volcanic eruption.

The blockchain-based cat loan plans to raise approximately $ 3 million and will focus on 10 active volcanoes around the world. These individual volcanoes pose a grave humanitarian threat to more than 700,000 people who live within a 60-kilometer radius of each volcanic mountain, according to the report.

The ten active volcanoes covered by cat leash include Popocatepetl in Mexico and Nevado del Ruiz in Colombia. Other companies include Merapi and Raung in Indonesia, as well as Fuego in Guatemala and Villa Rica in Chile. Mountain. The insurance fund also includes Cameroon in Cameroon, Ecuadorian Pichinchas, Cotopaxi and Tungurahua.

Commenting on the project, Replexus CEO Cedric Edmonds said:

“The Volcano CAT bond will be placed on the blockchain of insurance-linked securities, making the deal particularly cost-effective for the relief agency and allowing ILS investors to trade in second-hand goods.”
In fact, Mitiga Solutions risk management equipment has developed a simulation system to make it easier to allocate funds. The system analyzes ash-fly height generated by the eruption, as well as wind direction to determine the risk profile of vulnerable communities living around volcanoes.

When the plum ash tree crosses a certain height and the prevailing winds blow in the direction of these communities, its aging plum system automatically allows propulsion from the cat’s patch. Replexus has also created a legal blockchain responsible for de-materializing the bond with a system it claims can reduce settlement costs to $ 400,000 per bond issue.

Crypto and blockchain companies continue to play an active role in providing humanitarian assistance in times of natural and man-made disasters as part of their social responsibility. As Cointelegraph previously reported, cryptocurrency companies donated money to help people hit by the Texas Winter Storm earlier this year.

This past January, the American Cancer Society partnered with the crypto charity The Giving Block to create the first crypto cancer fund.