You cannot decrypt this password again but there is another method named "pwdcompare". Here is a example how to use it with SQL syntax:
USE TEMPDB
GO
declare @hash varbinary (255)
CREATE TABLE tempdb..h (id_num int, hash varbinary (255))
SET @hash = pwdencrypt('123') -- encryption
INSERT INTO tempdb..h (id_num,hash) VALUES (1,@hash)
SET @hash = pwdencrypt('123')
INSERT INTO tempdb..h (id_num,hash) VALUES (2,@hash)
SELECT TOP 1 @hash = hash FROM tempdb..h WHERE id_num = 2
SELECT pwdcompare ('123', @hash) AS [Success of check] -- Comparison
SELECT * FROM tempdb..h
INSERT INTO tempdb..h (id_num,hash)
VALUES (3,CONVERT(varbinary (255),
0x01002D60BA07FE612C8DE537DF3BFCFA49CD9968324481C1A8A8FE612C8DE537DF3BFCFA49CD9968324481C1A8A8))
SELECT TOP 1 @hash = hash FROM tempdb..h WHERE id_num = 3
SELECT pwdcompare ('123', @hash) AS [Success of check] -- Comparison
SELECT * FROM tempdb..h
DROP TABLE tempdb..h
GO