Why not? If the state is united and share the same vision and perception about bitcoin or the cryptoworld as a whole, then it can be possible. It will lead to a cashless state governed by cryptocurrencies.
These general phrases about building a state without a territory for walking Bitcoin cannot be used in practice. However, even if we assume that a separate state with its territory would be created, this state hardly existed for a long time. No economy of any state can operate on a decentralized cryptocurrency. There will be no relationship between cryptocurrency and the economy of this state; they will exist by themselves. Such a state cannot survive for a long time.