Hi @Chretienite
As @Taylor-RO already mentioned, there is no one real answer as to what you should do simply because love and relationships are very individualized things.
Some people can manage having a casual relationship and successfully remain just that and nothing more. But from my experience, the majority of people may find this difficult as there is a chance of someone or both of you growing more and more fond of each other over time and finding it difficult to maintain that casual boundary or even transition into a serious relationship as you have already discussed that it would be difficult for you two to commit. A casual relationship can be great if you can maintain it, but it lacks the emotional security of a full relationship - but again this wouldn't matter if you are able to keep yourselves from developing any feelings. It just seems difficult as any level of intimacy may spark emotions and desires that are difficult to control regardless of how much one might try to avoid it.
I think the most important thing is for you to continue talking to your friend and setting clear boundaries, expectations and have very explicit and clear communication to avoid confusion and to help keep each other accountable and on the same page.
Also, I apologize if I may have misunderstood your situation, but I hope my sharing of perspective helps some bit.
