1.) What would be the best currency to use for international transfers from the US to places like India, North Korea, the Middle East.
Bitcoin would always be preferable.
2.) How could the recipients turn their crypto into cash without going through a bank? For example, if we sent 10,000 worth of Rupee to India via crypto, how would the end user convert this into Rupee in their country?
You cant use up those local exchange yet it do have some regulation.So, your last resort is peer to peer transactions towards other parties.