Here are few considerations on this topic:
1. At the very bottom level passwords ARE encrypted and those encrypted hashes are stored in database;
2. Some our clients do need non-encrypted values for reports. For example they print report of parents and their student login/passwords and give them personally when meet in school. For this purpose we duplicate un-encrypted values and also store them in database. However, we do have an option to turn it OFF. When it is turned OFF, those reports cannot be used.
3. Also, some clients asked us for ability for global Admin to see (visually) un-encrypted passwords. This is also controlled by the same option as above and can be turned OFF. In this case, global admin will never know real password of the user.
4. Even though passwords are stored as encrypted hashes, when clicking "Forget password", they could be un-encrypted, because we use such 2-way encryption-decryption security method.
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