What is the safest way to utilize the postgres_fdw extension on Amazon RDS with respect to password security?

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If I want to connect from one postgres database to another, I have to use the postgres_fdw extension. Thats easy and fine, the only issue I have with it is that on RDS I seem to have no other option than to supply the password in plain text, which is insecure and mostly unacceptable for many organizations, for a variety of reasons.

Are there any alternatives to authentication that meet some sort of contemporary standard of security?

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