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What does the term 'covenant of grace' mean in relation to baptism?

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The 'covenant of grace' asserts that salvation is through faith in Christ alone, distinguishing the New Covenant from the Old and thus altering the understanding of baptism.

The term 'covenant of grace' reflects God's redemptive plan, culminating in Christ, where salvation is available through faith rather than through physical lineage or outward signs. This covenant is understood as distinctively new, fulfilling the promises of the Old while establishing a more intimate relationship with believers, characterized by personal faith and spiritual rebirth (Jeremiah 31:31-34). The argument for infant baptism’s validity through the 'covenant of grace' fails to recognize that while the Old Covenant included infants through physical descent, the New emphasizes individual faith, making infant baptism inconsistent with the New Testament's teachings on baptism as an expression of that faith.
Scripture References: Jeremiah 31:31-34, Hebrews 8:7-13, Colossians 2:11-12

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