Between Croatia and Serbia, one of the strangest attempts to create an independent state is underway. Liberland is not a joke and not just a crypto project, although many perceive it that way. Seven square kilometers of land that no one recognizes, but that doesn’t stop libertarian enthusiasts.

Recently, the first elections to the congress were held there, and they were conducted via blockchain. It sounds ambitious, but here’s the catch — no country in the world has officially recognized Liberland as a state. This creates an interesting paradox: democracy without a state.

Who is now in charge of this micro-nation? Justin Sun, the creator of TRON, was elected acting Prime Minister. He is known for his diplomatic work as Grenada’s ambassador to the WTO. Along with him, influential person Evan Lutra, journalist Jillian Godsil, and three re-elected members joined the congress. Sun sees Liberland as a minimalist state with no taxes, built entirely on blockchain. His comparison to the Vatican, but for libertarians, sounds appealing in theory.

And now, about the money. Liberland’s economy is based on a single asset — Bitcoin, which makes up 99% of the national reserves. Risky? Yes. But it aligns with the project’s philosophy. The population is registered at around a thousand citizens, but the actual number living there is much less. The territory is mostly swampy, with almost no infrastructure.

How do they earn money? Selling passports, stamps, issuing coins. All proceeds are converted into Bitcoin. Healthcare, basic services, proper infrastructure — all of this is lacking. Dreams of a decentralized state do not solve the problem of the absence of real resources.

The most difficult part is diplomacy. Croatia and Serbia simply ignore Liberland, with Croatia even arresting those attempting to settle there. Both countries see it as a publicity stunt. Argentine President Javier Milei, known for his libertarian views, publicly supported the project. There is interest from El Salvador, which adopted Bitcoin, and from Somaliland, which itself lacks broad recognition.

But without official recognition, Liberland remains isolated. It has no access to international organizations, treaties, or financial systems. Geopolitics in the Balkans is unpredictable — any misstep could lead neighboring countries to take control of the territory. The crypto-state experiment is interesting, but its viability remains highly questionable.