The Blood of Christ was for the forgiveness of Sins. Christ died on the cross so that All Sins could be forgiven. Did the redemptive work do away with the need for punishment of the Sin?
If so, why do we have a penal system in a Jesus oriented system?
Example: A child breaks the neighbors window.
Confession: Child tells the neighbor he/she is sorry, and they they are the ones that broke the window.
Forgiveness: The neighbor tells the child that they forgive them.
Punishment: Mom and Dad pay for the replacement window, but make the child do some extra chores around the house to make up the cost of the window.
Somewhere "The wages of Sin is death" has to come into play somewhere.
I think Jesus gave us an example that all Sin has to be paid for:
Matt 5: 22 But I say unto you, That whosoever is angry with his brother without a cause shall be in danger of the judgment: and whosoever shall say to his brother, Raca, shall be in danger of the council: but whosoever shall say, Thou fool, shall be in danger of hell fire.
23 Therefore if thou bring thy gift to the altar, and there rememberest that thy brother hath ought against thee;
24 Leave there thy gift before the altar, and go thy way; first be reconciled to thy brother, and then come and offer thy gift.
25 Agree with thine adversary quickly, whiles thou art in the way with him; lest at any time the adversary deliver thee to the judge, and the judge deliver thee to the officer, and thou be cast into prison.
26 Verily I say unto thee, Thou shalt by no means come out thence, till thou hast paid the uttermost farthing.