He's already told you that. He is being honest and respectful. He's taking his time. You can't push the river and you can't push this man. I would also start dating other men.
Men sometimes rise to their sense of competition.
Since you're not in an exclusive relationship, be the free agent that you are. If you can't handle being friends, then distance yourself but keep the connection going. Don't cut him off completely. And don't let your frustration about where the relationship isn't going right now impact on the friendship the two of you have built. I am shy as well and there is someone I like, but he has a tendency to avoid me in person or seem distant in his responses to my e-mails.