An Auckland cryptocurrency startup will receive a maximum of $126,000 from government grants agency Callaghan Innovation, the company now says.
Sam Blackmore, chief executive of Vimba, previously known as MyCryptoSaver, said in a statement on Wednesday that Callaghan had "invested" $330,000 in the company in what he described as "a real show of faith in the future of this very exciting asset class".
But the company's chief operating officer Matt Gibson said on Thursday that the payment approved by Callaghan was a grant for 40 per cent of a research and development project expected to cost $315,000, making the maximum size of the grant $126,000.
Callaghan has refused to comment on whether the grant should be seen as a vote of confidence in cryptocurrencies or the technologies behind them.
But spokeswoman Melanie Tuala has explained its research and development project grants are evaluated against set criteria and are "not discretionary".
Vimba lets people make regular, small purchases of Bitcoin and other cryptocurrencies, and Blackmore has said it would use the grant to develop new features for its digital wallets.
The Taxpayers Union lobby group said Callaghan needed to explain its decision to give a "loss-making Bitcoin start-up" taxpayers' money.
"This is just the latest in a long line of mad bets and gambles with our money," executive director Jordan Williams said.
Blackmore said other cryptocurrency firms had received funding from Callaghan. Confirmation has been requested from Callaghan.