How does being in Christ change a believer's identity?

The identity of a believer is radically transformed by being in Christ, as declared in 2 Corinthians 5:17, where Paul writes, 'Therefore, if anyone is in Christ, he is a new creation.' This transformation signifies that believers are no longer defined by their past sins or failures but are now seen as holy and blameless before God. Such identity is rooted in Christ's righteousness attributed to them, reminding believers that their justification comes purely by grace through faith. This new identity emboldens Christians to pursue holiness and live out their faith with assurance and purpose.