As of version 15.0, SAP Sybase IQ uses SHA256 to hash passwords. Passwords are stored in UTF-8.
When passwords are created or changed, they are converted to UTF-8 before being hashed and stored in the database. If the database is unloaded and reloaded into a database with a different character set, existing passwords continue to work. If the server cannot convert from the client's character set to UTF-8, SAP then recommends that passwords be composed of 7-bit ASCII characters as other characters may not work correctly.