Final answer:
The apex:outputText component can display encrypted fields in Visualforce, but it requires the right encryption type and user permissions.
Step-by-step explanation:
Yes, the apex:outputText component can be used for displaying encrypted fields in Visualforce pages. However, it depends on the type of encryption used. If the data is encrypted using Salesforce Classic Encryption it can be displayed directly using apex:outputText.
Field-level encryption that uses Platform Encryption will allow for the data to be decrypted automatically when accessed via Visualforce unless it is set to be masked. You need to ensure that your Visualforce page runs in the context of a user with the appropriate permissions to view the encrypted field.