Like other browsers Google Chrome also offers to save passwords with other information when a login form is submitted. Chrome will store passwords as plain text which makes all login information available to everyone who can access your computer. But Chrome also added another feature which protects your passwords with a master password.
I am using it in Windows 7 and if I set password to my user account in Windows, Chrome also asks for windows password when I try to see passwords stored in chrome's password manager. Before this feature storing passwords in Chrome was not a good idea because if someone had access to your PC they would have taken all of your accounts. Still storing passwords in chrome is not a good idea if you are not using password for windows.
If you are not using password for windows' user account then chrome will not ask for password to show passwords as plain text.
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Passwords and other login information stored in chromes Saved Password Manager can be accessed from this URL in your chrome:
If you are not using password for user account in Windows then you shouldn't save passwords in chrome. Chrome uses encryption for synchronization of your data to its servers but not to the passwords you store using its password manager locally. Chrome's built-in password manager is a good way to remember all of your passwords easily but it is not that much secure as you think it is. So, it is totally up to you whether you wanna store passwords without any security or not.