Introduction

Bixi uses established banking principles to perform monetary transactions and facilitate accurate accounting records and reliable financial reporting. As a payment gateway, Bixi allows developers to implement client applications that send or request payments through a unified API. This API is built on conventional double-entry accounting practice, enforcing the Assets = Liabilities + Equity accounting equation to remain balanced.

In our case, Assets are the cash balances in the API consumer’s account within Bixi. The API consumer can use this cash balance to send it to external wallets (MMT, crypto, etc.), keep it in their account, or withdraw it in cash. The balance is either a direct deposit to the account or incurred after receiving it through a payment request within the API. In either case, Bixi incurs a liability because it owes this deposited amount to the API consumer. Equity is generated when Bixi charges fees to process a payment.

In layman’s terms, the API consumer must deposit payment to their account within Bixi in order to be able to send payment transactions. The API consumer is not required to have a balance to request payment from a wallet.

Once a transaction is incurred, the transaction is marked as DEBIT in the account that it left, and CREDIT is added to the account that received the transaction.