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 be the best currency to use.
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?
They just have to look for a local exchange in their country or they could just look for a person that is willing to trade their coins for their currency. About North Korea, I doubt that they can find a local exchange there.