If we are talking about a Total Decentralized Country without government then I for one highly think that this is just realistically totally impossible.
A country like that would mean all decision making and planning are distributed to all people in that country. If the country has a population of 100 Million, then that would equate to 100Million deferring ideas, opinions and thoughts most of which do not have the knowledge nor the experience to make an informed decision. A country with that size would definitely take a lot of time to tally everyone's votes.
That is why there is "Government", to make all things organized. People choose their representatives and that representative will make the decision for them. If you look closely at Steem (a blockchain and platform that claims to be decentralized), our government is like our "Witnesses". We vote for them and they make all the decisions for us. Which is a solid proof why countries need representatives and/or government. To reach a consensus and decisions fast.
Yes, its absolutely possible! Here are some thoughts on how it might be run:
1. The governance would be based on digital consensus.
2. This means that blockchain would be the place where it would happen
3. The modern democratic government is a body which governs a country by the proxy of the people. Since, there would be no central government. I think digital referendums would be commonplace. This would be due to the fact that there would be no voting in congress or the parliament and the people would directly be deciding what to do.
4. There would be no central bank or fiat money
5. The economy would be completely tokenized.
No, it isn't. To run a country, you need law enforcement. For that you need men with guns. Men don't obey code, they obey orders and they will always be at a liberty to disobey them. If there were only the police but no government, the police would make their own rules and become the government. If you had laws but no police, those laws would be meaningless if you couldn't back them with potential for violence.
To have a decentralized country you need robots. Code can be law only if you have robot enforcers that obey code. With robots enforcing the law, you could have a Delegated-Proof-of-Citizenship chain in which to store all the laws and the code the enforcer robots run. The nodes would be run by witnesses whose job it would be to inspect and approve the code the robot enforcers ran and the smart contracts that made up the constitution of and other laws in force on the chain.
In a country like that, the traditional division of powers into the judicial, the legislative and the executive would be somewhat blurred. Legislative powers would be in the hands of the witnesses elected by the electorate (= all adult citizens). Executive and judicial powers would be merged to some degree in smart contracts, which is why such a society could be much more efficient than any current one. But possibly, there would perhaps need to be a separate judiciary with powers to create smart contracts effectively rolling back smart contracts containing errors or made under duress.
I believe law enforcement and the military will be replaced with robots to an increasing degree in the future. It will begin from information and command and control systems and spread out to increasingly automated surveillance and enforcement capabilities until law enforcement and the military will be completely automated. It is hard to say when that will happen. But it will be an absolute necessity to use decentralize control over them to avoid having a single point of failure for foreign powers, terrorists, criminals or corrupt officials to utilize to a disastrous effect.
This is a really interesting question which I have never though of. I think it won't be good if there is no central authority that organizes everything in our country. Maybe a partial government and of course decentralized currency. The question is that, if there is no government, then who is going to really govern the country? I wonder if any country can one day be fully automated. Maybe it can.
I guess, for the coming short term, it would a hybrid type of government. This is the type which makes the government more responsible of their actions and decisions in the country.
Blockchains can really help to improve the transparency of a country. In my country now, the government has to declare their total net worth. I think it's really important to prevent any extraordinary wealth obtained by corruption.
I am optimistic about the future. Decentralization would make sure that governments use the tax payers money properly in building the country and it's economies. It speeds up the transactions and reduce any transaction cost and can remove poverty at and even faster speed. I am seeing more wealth generated at the moment in the world.
Maybe there is a new type of government that will have to work together with the country's population instead of just making policies.
Countries without governments have been throughout history, some countries like Somalia, Beligica, Germany, Northern Ireland have been without rulers for a short period of time and despite the crisis that some faced have been able to move forward despite this.
Therefore we can see that it is possible that a country can be created without government. To think that a country without a government can be de-centralized is impossible for the following reason:
Summarizing the answer to your question:
"It is possible to create a country without government, but this will not be decentralized , as this is impossible."