I found the answer in the following document:
https://docs.microsoft.com/en-us/deployoffice/security/cryptography-and-encryption-in-office
Although there are Office 2016 settings to change how encryption is performed, when you encrypt Open XML Format files (.docx, .xslx, .pptx, and so on) the default values — AES (Advanced Encryption Standard), 256-bit key length, SHA1, and CBC (cipher block chaining) — provide strong encryption and should be fine for most organizations. AES encryption is the strongest industry-standard algorithm that is available and was selected by the National Security Agency (NSA) to be used as the standard for the United States Government.