Filesystem and machine running Obsidian are already encrypted. What I needed was something that would encrypt the data at rest in the backup server, like Joplin does - e.g you can store encrypted notes inside one drive

But I think I found something that may work out better with obsidian and git:

https://github.com/StackExchange/blackbox

Ideally we would have a plugin encrypting and salting file names, but if it doesn’t exist, it’s something of an idea for the future