The DB Security Manager supports password encryption. The password algorithm can be defined in the application configuration.
Simply add the passwordalgorithm setting to your existing configration:

<application>
  <securitymanager>
    ...    
    <passwordalgorithm>SHA</passwordalgorithm>
  </securitymanager>
 
  ...
</application>

The possible values are, e.g., SHA, SHA-256, SHA-384, SHA-512, MD5, MD4, MD2, and all supported Java message digest algorithms as described here.

If you set the passwordalgorithm to PLAIN, the password will be in plain text.