A discussion about XRP’s role in global finance has focused on a key distinction within the payments industry after software engineer Vincent Van Code made it clear that understanding the difference between payments and settlement could change how people view the digital asset.
His comments centered on the mechanics of financial transactions, with the engineer maintaining that many market participants misunderstand how value actually moves through financial systems.
Vincent Van Code stated in his tweet that anyone who fully understands the difference between payment and settlement would be inclined to buy XRP. He added that his post was not financial advice but rather an explanation of concepts that he believes are often confused.
When you fully understand the difference between PAYMENT and SETTLEMENT, you will go out and buy XRP.
And here is AI explanation of each. For your convenience.
Payment: The instruction or process of transferring value/claims from payer to payee (e.g. authorising a bank…
— Vincent Van Code (@vincent_vancode) July 17, 2026
Payment and Settlement Are Not the Same Process
To support his point, Vincent Van Code included an AI-generated explanation that separates the two terms.
The explanation says payment is the instruction or process of transferring value or claims from a payer to a payee. This can include authorizing a bank transfer, swiping a payment card, or broadcasting a cryptocurrency transaction. In each case, the payment creates or updates an obligation between the parties involved.
Settlement, by contrast, was defined as the final and irreversible transfer of the underlying money or asset that completely discharges that obligation. The explanation noted that settlement occurs when funds move between banks, typically using central bank reserves, or when a blockchain transaction reaches finality on-chain.
By highlighting these definitions, Vincent Van Code suggested that payment and settlement serve different functions within financial infrastructure and that recognizing this distinction is important when evaluating XRP’s intended use case.
Community Members Offer Different Perspectives
The post prompted several responses from members of the XRP community and critics alike.
One commenter, identified as STU, challenged the conclusion that XRP is necessary for settlement. STU explained that stablecoins are increasingly used for both payments and settlement and stated that major financial organizations, such as SWIFT and the Depository Trust & Clearing Corporation, have not presented workflows that require XRP. The commenter questioned the basis for Vincent Van Code’s assertion.
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Another user, Mike, stated that settlement and liquidity have become frequently repeated terms among XRP supporters. He maintained that many advocates reference these concepts without having a strong understanding of how the financial industry actually operates.
Meanwhile, XRPpundit expressed support for the explanation. The commenter stated that distinguishing between payment and settlement is a useful concept to understand, regardless of whether someone supports a particular digital asset.
While the discussion did not produce agreement on XRP’s future role within financial markets, Vincent Van Code’s post placed the distinction between payment and settlement at the center of the conversation. The differing responses highlighted that although participants may agree on the technical definitions of these processes, they continue to disagree on whether XRP will ultimately become a critical component of settlement infrastructure.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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