Origin of The Term
Martin Luther elevated sola fide to the principal cause of the Protestant Reformation, the rallying cry of the Protestant cause, and the chief distinction between Protestant Christianity and Roman Catholicism. John Calvin, also a proponent of this doctrine, taught that "every one who would obtain the righteousness of Christ must renounce his own." According to Calvin, it is only because the sinner is able to obtain the good standing of the Son of God, through faith in him, and union with him, that sinners have any hope of pardon from, acceptance by, and peace with God.
While this precise terminology —"by faith alone"— does not appear in English Bible translations other than in James 2:24 where it has been claimed that the author seems to reject the notion that a person is justified by God solely on account of faith, other Catholic authorities also used "alone" in their translation of Romans 3:28 or exegesis of salvation by faith passages, and it is claimed to summarize the teaching of the New Testament, and especially the Pauline epistles such as Romans 4, which systematically reject the proposition that justification before God is obtained due to the merit of one's obedience to the Law of Moses (see also Biblical law in Christianity), or Abraham's circumcision and works.
Protestants base this on the fact that the New Testament contains almost two hundred statements that appear to imply that faith or belief is sufficient for salvation. For example: "Jesus said unto her, I am the resurrection, and the life: he that believe in me, though he were dead, yet shall he live." (John 11:25, emphasis added). And especially Paul's words in Romans, "Therefore we conclude that a man is justified by faith without the deeds of the law." (Romans 3:28) "Now to him that worketh is the reward not reckoned of grace, but of debt. But to him that worketh not, but believeth on him that justifieth the ungodly, his faith is counted for righteousness." (Romans 4:4-5)
Read more about this topic: Sola Fide
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