Both. Technically no one but the alrasians had the ability to use gunpowder but then everyone metagamed it and built a million cannons on their walls etc. Now there are none. And that is how it will most likely stay.
I just used magic to make fireworks. Magic powders etc with alchemy, it's not like Fireworks even have true explosive potential anyways, they're more likely to burn things than blow things up.
