3 square miles? lol that's pretty damn small for a country.

I dunno if that will have an impact on bitcoin
I think have an impact for the country, because this is first country which make bitcoin as payment, but who knows maybe that country will make attract more ppl to adopt bitcoin.
This is a sad attempt at a country. It probably won't have any effect at all. Just imagine their population, a few thousand at best?
They will endorse cryptocurrency. They never said that they will make Bitcoin their currency. There's a difference.