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“This is the first measure towards expanding privacy and inviolability of official communication,” tweeted Brazilian President Rousseff on Monday.
The technology will be implemented in November.
“Using Expresso V3 in the communications system will completely rid the government of all espionage,” said Marcos Mazoni, head of the Federal Data Processing System.
The new indigenous security technology will host all traffic on its servers and use only state-owned cable networks, with no participation of foreign companies or networks.
“Determined to deploy SERPRO system to secure emails across the federal government,” said President Rousseff on Monday.
The president had earlier cancelled a trip to Washington saying she had not received adequate answers from her US counterpart Barack Obama on the spying allegations.
Documents leaked by former US National Security Agency contractor Edward Snowden showed the US and Canadian governments had spied on Brazilian citizens, officials and companies.
Targets included Brazilian President Dilma Rousseff’s official communications, the Mines and Energy Ministry and state oil and gas giant Petrobras.
The documents also revealed that Canada and the US shared collected information with their allies as part of a global surveillance scheme purportedly set up to fight terrorism.
The Brazilian government said it is updating its security on all fronts and also plans to develop a secure e-mail system for private citizens.
Rousseff had strongly criticised the United States in her opening speech at the United Nations General Assembly (UNGA) last month.
“Brazil, Mr President, knows how to protect itself. We reject, fight and do not harbour terrorist groups,” said President Rousseff.
The Brazilian president announced to world leaders gathered in New York that the country will usher in new legislation and technology to shield its citizens from such surveillance.
She also urged the UN to form a global body that would draft international rules on privacy and security in cyberspace.
“The time is ripe to create the conditions to prevent cyberspace from being used as a weapon of war, through espionage, sabotage and attacks against systems and infrastructure of other countries,” she said.
With inputs from Agencies