Trump's Davos "Peace Committee" Sparks Global Governance Crisis: Why the $1 Billion Seat Angers Europe

On January 20th local time, U.S. President Trump unveiled a new concept called the “Board of Peace” at the World Economic Forum in Davos, demanding that invited countries sign the charter and pay $1 billion by this Thursday in exchange for a permanent seat. This move quickly caused a global震动, not only angering European allies but also widely interpreted as the U.S. attempting to sideline the United Nations and establish a new institutional challenge.

Event Overview: A seemingly “peaceful” power game

Key information about the core proposal

According to the latest news, Trump’s “Board of Peace” proposal includes the following elements:

• The list of invited countries spans Western allies and non-Western nations, including Belarus and Russia
• Sign the charter by January 23rd (this Thursday)
• Pay $1 billion as the price for a permanent seat
• Draft charter shows decision-making power highly concentrated in Trump himself
• Lack of transparency in fund flows and governance mechanisms

Europe’s split response

French President Macron was the first to explicitly refuse to sign, taking the most firm stance. Many EU countries are caught in a dilemma, neither willing to directly oppose the U.S. nor fully trusting the legitimacy and transparency of the committee. According to the latest news, the 27 EU ambassadors plan to hold an emergency meeting to coordinate responses, reflecting high internal vigilance within Europe.

In-depth analysis: Structural cracks in the global power architecture

This is not just about a committee

Bitunix analysts point out that the core of this event is not whether a single committee can be established, but that the global power structure is shifting from the existing multilateral system toward a more fragmented, leader-dominated game model. Essentially, Trump’s move is a direct challenge to the post-war international order.

Europe’s strategic dilemma

Europe’s current strategy is to delay, attempt to modify the terms, and pressure the U.S. through coordination with Arab countries and allies. However, this “soft resistance” strategy reveals Europe’s fundamental dilemma: needing U.S. security umbrella (especially regarding Ukraine) but unwilling to accept unilateral reforms of the system by the U.S.

Related reports indicate that Trump has also taken more direct economic measures against Europe—imposing a 10% tariff on eight European countries to push forward negotiations on the “Greenland issue.” EU Commission President von der Leyen and European Council President Costa warned that using tariffs to pressure allies could damage US-EU relations and potentially trigger a “dangerous vicious cycle.”

Three signals of restructuring the power architecture

Market impact: Geopolitical risk premiums and the new role of crypto assets

Short-term shock

Increased uncertainty in global governance will heighten geopolitical risk premiums, putting traditional risk assets under short-term pressure. This is already reflected in European stock markets—after Trump announced tariff threats, European markets experienced noticeable sell-offs.

Hedging value of crypto assets

From the crypto market perspective, Bitcoin and mainstream cryptocurrencies are once again viewed as “non-sovereign, decentralized” hedging tools. Against the backdrop of rising geopolitical risks, these assets’ medium-term valuation stability appears relatively advantageous. Matrixport’s latest analysis shows that although implied volatility has fallen, investors are shifting strategies from “chasing gains” to “enhancing yields”—using options strategies within ranges to smooth returns, reflecting a new understanding of market volatility.

Personal opinion

Trump’s series of aggressive policies (“Peace Committee,” tariff threats, lawsuits against JPMorgan Chase) form a complete picture of power reshaping. While these policies seem independent, they all point in the same direction: breaking the existing checks and balances and establishing a new order more aligned with U.S. unilateral interests. In this process, crypto assets, with their “decentralized, non-sovereign” characteristics, have gained new strategic value.

Future outlook: Key points to watch

Based on current information, key market observations include:

• European unified response: Will the EU form a coordinated stance or continue to be divided and cautious?
• U.S. continued push: Will Trump continue to use systemic restructuring as a diplomatic and financial negotiation tool?
• Evolution of the power structure: Is the world truly shifting from a multilateral system toward fragmentation and leader-dominated models?
• Repricing of risk assets: Long-term impacts of geopolitical risk premiums on traditional finance and crypto markets

These factors will profoundly influence risk appetite and long-term capital allocation.

Summary

Trump’s “Board of Peace” proposal is fundamentally a systemic challenge to the post-war multilateral system, not merely a diplomatic innovation. Europe faces a strategic dilemma—needing U.S. security support but reluctant to accept unilateral pressures. The structural cracks in global governance are widening, with rising geopolitical risk premiums short-term suppressing risk assets but also providing new strategic support for crypto assets’ hedging role. The key future questions are whether Europe can form a unified response and whether the U.S. will continue to advance this power restructuring process.