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.
North Korea will be a no go area at all, I learnt that they even ban the use of internet in North Korea and only permitted when authorized by the government, for a country that doesnt use internet much, how would the citizens even be aware of cryptocurrency, in this quest for adopters of crypto, we just have to zero our mind on North Korea.
I think your suggestion is very wise to follow for him and I believe India will even be a very good place to be able to do such because of their population and their strong exposure to information technology and virtually they should have upto 10% crypto users there, just that they will be forced to sell their BTC at a very low price if they are to go by your method.