The reason is because ccTLDs need to match the alpha-2 code of the country as it exists in ISO 3166-1. This is because IANA doesn’t want to be the arbiter of which countries exist or not. You get a code, you get a ccTLD. No code, no ccTLD.
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gTLDs are 3 characters or more (.com .net .org ). 2 characters TLDs are reserved for ccTLDs. This allows a CLEAR separation between gTLDs and ccTLDs, so that precisely what’s happening with the .io ccTLD doesn’t happen on accident.